Taiwan Stock Index
The Taiwan Stock Index (TWSI) is an index derived from the Taiwan Stock Exchange (TWSE). It tracks the movement of the TWSEs weighted stock prices and is used as a benchmark of the overall performance of the Taiwan stock market. The TWSI is also known as the TAISIX or the TAIEX.
The TWSI is divided into 11 sector indices, including consumer goods, financial services, information technology, science and technology, transport and communications, consumer services, healthcare, material industries, real estate, manufacturing and utilities. Each sector index is composed of a number of now more than 500 stocks that represent the sectors of the Taiwanese economy.
The TWSI is designed to provide investors with a benchmark against which to measure the performance of their investments in Taiwan, as well as to enable comparisons between different industries within the country. It is seen as an important tool for investors looking to increase their exposure to the Taiwan stock market.
The TWSI is a market capitalisation-weighted index, which means that each component stock is weighted in the index in proportion to its market capitalisation on the exchange. The market capitalisation is the sum of the component stocks individual share price multiplied by their number of outstanding shares. This method of weighting ensures that larger and better-performing companies have a greater influence on the index as compared to smaller ones.
The TWSI is calculated every 15 seconds during a trading session and is published in real time. It is also recalculated and updated at the close of each trading session. The index is calculated using a base of 1,000 points set on 1 January 1980.
The TWSI has seen substantial growth since its history began in 1965. It has risen from a base of 1,000 points in January 1980 to the highest closing level ever of 12,157.68 points on 21 July 2017. Investors, who act on the basis of the index, would have seen returns of more than 6,400% during that period.
The TWSI has recently seen the effects of U.S. recession, where global markets have seen some heavy losses. Despite this, the TWSI continues to provide a solid performance. This is due in large part to the sound fiscal and monetary policies of the Taiwanese government, as well as the strength of the tech and telecoms industries.