Taiwan stock indexes

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Taiwanflag.jpg This page deals specifically with investing in Taiwan
Taiwan Stock Exchange, located in Taipei 101, Taipei, Taiwan


The Taiwan Stock Exchange (TWSE) was founded in 1961. As of December 31, 2011 the Taiwan stock market had listings of 790 companies with a combined market capitalization of TWD [note 1]19,216,183 million. [1]

Taiwan's GreTai Securities Market (GTSM; 證券櫃檯買賣中心) was established on November 1 1994. The GreTai provides over-the-counter trading mechanisms for listed stocks and the GTSM emerging stock market, as well as for government and corporate bonds, and derivatives. [2] [note 2] As of year end 2012, the GreTai listed 638 stocks with a market capitalization of 17,379,810 NT$1million.

The Taiwan stock exchange provides an index, the TAIEX (Taiwan Stock Exchange Capitalization Weighted Stock Index) in both price and total return versions, which measures performance of the stocks listed on the TWSE. In addition the TWSE collaborates with FTSE to provide two broad market investable free-float market capitalization indexes, the FTSE-TWSE Taiwan 50 index and the the FTSE-TWSE Taiwan Mid Cap 100 index. [note 3]

The GreTai exchange provides the GTSM (GreTai Stock Market) Index as a benchmark for GreTai listed stocks. In 2010 the exchange created an investable free-float market capitalization index, the GreTai 50 Index. [3]

MSCI provides the MSCI Taiwan Index, which includes stocks from both the TWSE and the GreTai exchanges. The index is an investable free-float market capitalization index.

Taiwan stock returns

TAIEX index

The TAIEX (Taiwan Stock Exchange Capitalization Weighted Stock Index) covers all of the listed stocks on the Taiwan exchange excluding preferred stocks, full-delivery stocks and any newly listed stocks which are listed for less than one calendar month. The Total Return Index (starting date January 2, 2003) adds back cash dividends to index calculations. [4] This index is especially relevant to investors since it tracks the value of invested stock portfolios (which include both capital changes and dividend reinvestment).

The Taiwan Stock Exchange provides TAIEX price index data going back to 1967.

The National Statistics Government of China (Taiwan) provides consumer price inflation dating back to 1960.

Table. TAIEX Total Return [5]


(View Google Spreadsheet in browser, then File --> Download as to download the file.)

FTSE-TWSE Taiwan 50 index

The FTSE-TWSE Taiwan 50 index is a free-float market value weighted index that is comprised of the 50 most highly capitalized Taiwan stocks. The index represents nearly 70% of the Taiwanese market capitalization. The index was launched October 29, 2002. [note 4]

Table. FTSE-TWSE Taiwan 50 [6]


(View Google Spreadsheet in browser, then File --> Download as to download the file.)

FTSE-TWSE Taiwan Mid Cap 100 index

The FTSE TWSE Taiwan Mid-Cap 100 Index is a free-float market value weighted index that consists of the next 100 companies ranked by full market value, outside the FTSE TWSE Taiwan 50 Index. These stocks make up nearly 20% of the Taiwan stock market capitalization. The index was launched on November 29, 2004. [note 5]

Table. FTSE-TWSE Taiwan Mid Cap 100 (price index) [7]


(View Google Spreadsheet in browser, then File --> Download as to download the file.)

GreTai Stock Market Index

The GTSM Index was first published in November 1995 with 100 points as the base. The GTSM specializes in emerging and high-tech industries as well as providing listings for small and medium-sized enterprises. [8]

Table. GTSM index (price index) [9]


(View Google Spreadsheet in browser, then File --> Download as to download the file.)

GreTai 50 Index

The GreTai 50 Index was launched on April 10, 2010. The GreTai 50 is a free-float, market capitalization index that provides access to 43% of the GTSM market capitalization. [note 6]

Table. GreTai 50 (price index) [10]


(View Google Spreadsheet in browser, then File --> Download as to download the file.)

MSCI Taiwan Index

The MSCI Taiwan Index is a free-float adjusted market capitalization weighted index designed to track the equity market performance of Taiwanese securities listed on Taiwan Stock Exchange and GreTai Securities Market, with market capitalization coverage of 85%. The index has a base date of December 31, 1987. [note 7]

Table. MSCI Taiwan Index [11]


(View Google Spreadsheet in browser, then File --> Download as to download the file.)

See also

Notes

  1. TWD is the currency code for the Taiwan dollar. See New Taiwan dollar, wikipedia for further information.
  2. The GreTai provides a number of stock indexes. The GreTai Securities Market Index (TWOTCI) is a capitalization-weighted index. The index consists of all stocks that have been listed for more than one month on the GreTai Securities Market. The index was developed with a base value of 100 on November 1, 1995. The index is now calculated in price and total return indexes. The GreTai launched price and total returns indexes for the Gretai 50 Index (GTSM50) in April 2010. See Gretai 50 index. The index is tracked by an exchange traded fund.
  3. FTSE-TWSE also collaborate to supply specialty indexes. These include;
    1. FTSE TWSE Taiwan Technology Index
    2. FTSE TWSE Taiwan Dividend+ Index
    3. FTSE TWSE Taiwan Eight Industries Index
    4. FTSE TWSE RAFI Taiwan Index Series
    5. FTSE TWSE Taiwan Shariah Index.
  4. The FTSE-TWSE Taiwan 50 index is tracked by the Polaris Yuanta/P-shares Taiwan Top 50 ETF, see TWSE Exchange Traded Funds, (english) and the Fubon FTSE TWSE Taiwan 50 ETF , see link.
  5. The FTSE-TWSE Yuanta/P-shares Taiwan Mid-Cap 100 ETF, represents an additional 20% exposure to the Taiwan market. A combination of the Taiwan 50 and Taiwan Mid Cap 100 ETFs provides access to 90% of the Taiwan stock market. See TWSE Exchange Traded Funds, (english).
  6. The GreTai 50 index is tracked by the Polaris Yuanta GreTai 50 ETF. See ETF specification.
  7. Polaris provides an ETF based on the MSCI Taiwan Index (link), as does Fubon link. The MSCI Taiwan index includes 114 stocks covering 85% of the Taiwan market capitalization.

References

  1. 2012 Factbook
  2. GreTai History
  3. GreTai Newsletter 58
  4. TAIEX index Introduction, TWSE
  5. Data sources:
    Total Return Index returns: TAIEX return calculator, TWSE;
    Price Index returns: Lock, Dat Bue The Taiwan stock market does follow a random walk, Economics Bulletin, Vol. 7, No. 3 pp. 1-8 (2007) and TWSE Factbooks;
    Inflation data: Consumer Price Index, National Statistics Government of China (Taiwan) - available for download.
  6. Data sources:
    Index returns: 台灣50報酬指數 calculator
    Inflation data: Consumer Price Index, National Statistics Government of China (Taiwan) - available for download.
  7. Data sources
    : 台灣中型100報酬指數], calculator
    Inflation data: Consumer Price Index, National Statistics Government of China (Taiwan) - available for download.
  8. GreTai history
  9. Data sources:
    加權股價指數之報酬指數,calculator
    Factbooks
    Inflation data: Consumer Price Index, National Statistics Government of China (Taiwan) - available for download.
  10. Data sources:
    櫃買富櫃五十報酬指數, calculator
    Inflation data: Consumer Price Index, National Statistics Government of China (Taiwan) - available for download.
  11. Data sources:
    MSCI Taiwan Index (english), calculator
    Inflation data: Consumer Price Index, National Statistics Government of China (Taiwan) - available for download.

External links

Bibliography