Taiwan Capitalization Weighted Stock Index (TAIEX)

Parent Index

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Indices informations

Countries Represented	Taiwan
Central Bank	Bank of Taiwan
Nickname	TWD
Related Constituents
Weightage of Largest Constituent
Weightage of Top 5 Constituents
All time High	18619.61
All time Low	1506.83
Market Capitalization	1,596.374 USD Billion
Weighting Methodology	Free Float Market Captilization
Year to Date Return	22.46%
Dividend Yield	2.10%
Price to earning Ratio	17.790

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Sector Represented

Indices

Taiwan Capitalization Weighted Stock Index: An Overview

The Taiwan Capitalization Weighted Stock Index (TAIEX) is a major stock market index that represents the performance of publicly listed companies on the Taiwan Stock Exchange (TWSE). It is one of the most widely followed equity indices in Taiwan and serves as an important benchmark for investors and financial professionals.

The TAIEX was first introduced on January 4, 1962, with a base value of 100 points. Over the years, it has evolved to capture the changes and growth of the Taiwanese economy and stock market. The index is calculated in real-time based on the market capitalization of its constituents and is adjusted periodically to reflect changes in the composition of the market.

The key characteristic of the TAIEX is its capitalization-weighted methodology. This means that the index gives more weight to companies with larger market capitalizations, thus reflecting their influence on the overall market performance. This approach ensures that the index accurately represents the performance of the larger and more significant companies in the Taiwanese stock market.

The TAIEX consists of the top 50 stocks by market capitalization listed on the TWSE. These companies come from various sectors, including technology, manufacturing, finance, and services, among others. As such, the TAIEX provides a comprehensive snapshot of the Taiwanese economy and its major industries.

Investors and market participants closely monitor the TAIEX as it serves as a gauge of the overall health and direction of the Taiwanese stock market. It is used as a reference point for evaluating the performance of individual stocks, mutual funds, and other investment products. Furthermore, many index-tracking funds and exchange-traded funds (ETFs) are designed to replicate the performance of the TAIEX, allowing investors to gain exposure to the broader Taiwanese equity market.

It is important to note that the TAIEX is not limited to domestic investors. It attracts significant international attention as Taiwan has a strong presence in global technology and manufacturing sectors. Foreign investors often refer to the TAIEX as an indicator of Taiwan’s economic strength and investment potential.

In conclusion, the Taiwan Capitalization Weighted Stock Index (TAIEX) plays a crucial role in tracking the performance of Taiwanese stocks and providing valuable insights into the overall market trends. Its capitalization-weighted methodology and inclusion of top companies make it a reliable benchmark for investors and a reflection of the broader Taiwanese economy.

The Taiwan Capitalization Weighted Stock Index (TAIEX) is a major stock market index that represents the performance of the equity market in Taiwan. It is widely used as a benchmark to measure the overall health and direction of the Taiwanese stock market. The TAIEX is managed by the Taiwan Stock Exchange (TWSE) and includes some of the largest and most influential companies in Taiwan.

Major Companies of the Taiwan Capitalization Weighted Stock Index (TAIEX)

1. Taiwan Semiconductor Manufacturing Company (TSMC):

TSMC is the world’s largest semiconductor foundry company and is a crucial player in the global semiconductor industry. It designs, manufactures, and sells integrated circuits (ICs) and other electronic components. TSMC has a significant impact on the performance of the TAIEX due to its dominant position and contribution to Taiwan’s economy.

1. Hon Hai Precision Industry Co., Ltd. (Foxconn):

Foxconn is a multinational electronics contract manufacturing company headquartered in Taiwan. It is one of the largest electronic manufacturers globally and produces products for major brands like Apple, Microsoft, and Sony. Foxconn’s operations have a substantial influence on the TAIEX given its importance in global supply chains and its role as a key employer in Taiwan.

1. Formosa Plastics Corporation:

Formosa Plastics Corporation is a diversified Taiwanese conglomerate engaged in various industries such as petrochemicals, refining, plastics, and biotechnology. The company operates through subsidiaries and has a significant presence both domestically and internationally. As one of Taiwan’s largest corporations, it contributes significantly to the TAIEX’s performance.

1. MediaTek Inc.:

MediaTek is a Taiwanese semiconductor company known for its expertise in system-on-chip (SoC) solutions. It designs and markets chips used in smartphones, tablets, smart TVs, and other consumer electronic devices. MediaTek’s innovative technologies and products make it a key player in the global semiconductor industry and a vital component of the TAIEX.

1. Cathay Financial Holding Co., Ltd.:

Cathay Financial Holding is a financial services conglomerate with diverse operations, including banking, insurance, and brokerage services. It is one of Taiwan’s largest financial institutions and plays a crucial role in Taiwan’s financial industry. Cathay Financial Holding’s performance has a considerable impact on the TAIEX due to its extensive reach and influence in the market.

These are just a few examples of the major companies included in the Taiwan Capitalization Weighted Stock Index (TAIEX). The index comprises a wide range of sectors, including technology, finance, manufacturing, and more. The performance of these influential companies, along with others in the TAIEX, collectively reflects the overall health and direction of the Taiwanese stock market.

Taiwan Capitalization Weighted Stock Index Key Data Points

The Taiwan Capitalization Weighted Stock Index, also known as the TAIEX, is a major stock market index that tracks the performance of publicly traded companies listed on the Taiwan Stock Exchange (TWSE). It is one of the most important benchmarks for the Taiwanese stock market and provides valuable insights into the overall health and performance of the country’s economy.

Here are some key data points related to the Taiwan Capitalization Weighted Stock Index:

1. Calculation Methodology

The TAIEX is calculated using a market capitalization-weighted methodology. This means that the index is influenced by the total market value of the constituent stocks. Larger companies with higher market capitalizations have a greater impact on the index compared to smaller ones.

2. Constituent Stocks

The TAIEX includes all the stocks listed on the TWSE that meet certain criteria, such as liquidity and free float requirements. As of [current year], it consists of around [number] constituent stocks.

3. Market Coverage

The TAIEX covers various sectors, including technology, finance, manufacturing, and services. It represents a diverse range of industries and provides investors with exposure to different segments of the Taiwanese economy.

4. Weighting Scheme

The TAIEX adopts a free float-adjusted weighting scheme. Free float refers to the shares available for trading by the public, excluding those held by controlling stakeholders or government entities. This scheme ensures that the index accurately reflects the proportionate ownership of shares available to the general investing public.

5. Historical Performance

The TAIEX has a long history of tracking the Taiwanese stock market. It offers investors the ability to analyze historical performance trends and make informed decisions based on past data.

6. Index Levels

The TAIEX is calculated in real-time throughout the trading day. Its levels are denominated in index points, with the base level set at [base year] at [base value]. The index provides a snapshot of the overall stock market performance at any given moment.

7. Market Impact

Given its importance as a barometer for the Taiwanese economy, the TAIEX has a significant impact on investor sentiment and market confidence. Fluctuations in the index can influence buying and selling decisions, and often attract attention from both domestic and international investors.

In conclusion, the Taiwan Capitalization Weighted Stock Index plays a crucial role in the Taiwanese stock market landscape. It provides key data points that reflect the performance of major publicly traded companies and offers valuable insights into the overall health of the Taiwanese economy.