TAIPEI–The Taiwan Employment Creation 99 Index has outperformed the Taiwan Stock Exchange Index (TAIEX) after it was launched by the Taiwan Stock Exchange (TWSE) in late December, the exchange said yesterday.
The employment creation index, which was jointly compiled by the stock exchange and the Research Affiliates, LLC., and launched on Dec. 30, has generated a return of 3.6 percent since its debut, higher than a 0.62 percent return posted by the TWSE, the exchange said.
The newly unveiled index’s return also surpassed a 0.98 percent return generated by the Taiwan 50 Index, which was compiled by the TWSE and the FTSE Group and includes 50 of the largest capitalized blue chip stocks traded in Taiwan, it said.
The constituents of the Taiwan employment creation index are the 99 companies which hire the most workers among all listed companies in the local bourse. A company which has a higher number of employees weighs more on the index.
The TWSE said the index was launched to encourage locally listed enterprises to create new jobs and fulfill their social responsibility.
The exchange said all of the companies on the new index are “highly profitable.”
The index is composed of 18 banking and insurance stocks, 48 high tech stocks and 33 stocks from the old economy sector. Cathay Financial Holdings has the highest weighting of 8.31 percent.