Opinions for newly-listed stocks in MSCI - Taiwan Stock Market

MSCI just added 22 Taiwan stocks. following are stock data(5/15), exclusive of OTC stocks and sorted by total market capitalization.

Symbol	Name	5/15 market cap(B)	5/15 foreign investor shares held weight(%)	5/15 juridical persons Weight(%)	2 days price shift(%)	2 days foreign investor net buyer
5522	Farglory Land Development	51.14	10.82	11.52	13.30	2219
3622	Young Fast Optoelectronics	47.83	16.96	20.72	10.90	-304
2607	Evergreen Int'l Storage & Transport	32.92	2.24	7.66	10.97	1835
2707	Formosa International Hotels	31.05	36.72	41.71	6.93	380
2385	Chicony Electronics Co	29.39	20.06	24.79	0.00	2064
2103	TSRC Corporation	26.00	22.51	31.97	2.04	5868
3702	WPG Holdings Limited	25.26	13.76	18.69	5.16	2922
2344	Winbond Electronics Corp	25.19	13.20	13.71	2.86	11848
2362	Clevo Company	24.84	18.95	21.82	1.45	3686
2384	Wintek Corporation	24.51	8.76	11.92	6.91	-293
9921	Giant Manufacturing Co Ltd	23.97	33.87	36.59	-1.46	2186
6005	Capital Securities Corp	23.60	11.82	12.05	6.16	1627
2208	CSBC Corporation, Taiwan	23.05	1.15	2.56	8.13	2652
3443	Global Unichip Corp	22.37	11.46	17.34	-2.46	188
2377	Micro-Star International	22.33	15.59	16.26	0.67	5028
2915	Ruentex Industries Limited	22.24	15.83	23.60	4.36	3370
2605	Sincere Navigation Corporation	20.23	39.48	48.01	5.95	3286
2388	VIA Technologies	19.50	2.87	2.92	2.03	1514
8299	Phison Electronics Corp	29.64	33.21	34.00	1.84	-823
3227	PixArt Imaging Inc	35.57	3.43	22.44	10.68	330
5371	Coretronic Corporation	23.92	16.00	25.24	3.29	6249
6121	Simplo Technology	28.79	28.51	41.72	-0.72	892

Note:Price shift comes from ((15th close price/14th open price) -1) * 100%

1.Foreign investors will buy stocks with MSCI adjusting. Only index funds which follow MSCI index will sell. And the date to adjust their shares weight is 5/29. Other investors would begin to find arbitrage opportunity. Index funds will not adjust presently.

2.Foreign investors will buy in or sell out with MSCI adjusting. They do that for getting more return rate than reference index. It means that they can beat MSCI by choosing better performance stocks. One of those ways is buy a stock which doesn't exist in MSCI and it performs better than MSCI average. Or add the same stocks to the portfolio but add more weight for expecting better stocks.

3.How could an individual get more profit? More fast? Prophesy before news launch? Operate before EU/US markets opening. We need more thoughts to fight with foreign investors.

4.This time MSCI adjusting added stocks' total cap are about 20~35B TWD besides 5522, 3622. Those are not in front rank in MSCI. So those stock only weight less in Index Funds.

5.For getting market average profit, foreign investors will not buy a low weight stock too many. On the other hand If they held too much weight for a low weight stock in MSCI, they will sell the stocks to reduce weight. and vice versa.

6.Taiwan Stock Market is very important in IT supply chain. This time MSCI chose Chicony Electronics Co., Ltd( Taiwan biggest keyboard manufactor), WPG Holdings Limited(Taiwan biggest IC sales agent), Global Unichip Corp.(TSMC subsidiary for design service), Micro-Star International Co Ltd( good brand netbook supply vendor), Coretronic Corporation( Taiwan second biggest backlight modules), Simplo Technology Co., Ltd.(Lithium battery packs for notebook), Phison Electronics Corp.(biggest NAND control chip), PixArt Imaging Inc.( Nentendo wii IC supply). Those companies are notable in their domain and foreign investor held those high weight, they might not buy more.

7.Big 3 juridical persons held high weight, ex:Formosa International Hotels Corp,

China Synthetic Rubber Corporation

, Giant Manufacturing Co Ltd,

Sincere Navigation Corporation,They bought the shares enough then they will not buy those stocks more.

8.Notice to large daily volume after MSCI announce adjusting results, someone will try to sell out for earning other individual's bucks in chaos.