The Japan Exchange Group, which owns the Tokyo Stock Exchange, plans to review the constituents of the Tokyo Stock Price Index = Topics, a representative index that shows stock price movements, as part of its market reforms.
Although 22% of the stocks may be excluded due to the review, the exchange group says that the continuity as an index will not be lost and will not fluctuate significantly.
The Tokyo Stock Exchange abolished the first section in April this year and reorganized it into three markets, including the top-ranked ``prime market''. It indicates a policy to review in stages.
Until now, the index was calculated by incorporating all stocks listed on the former First Section of the Tokyo Stock Exchange. Stocks with less than 100 million yen will be phased out.
Regarding this, the Japan Exchange Group announced on the 7th that 493 companies, or 22%, of the 2168 stocks included in Topics may be excluded from the constituent stocks.
If the situation does not improve by October next year and the conditions are not met, it will be removed at the end of January 2025.
The Japan Exchange Group said, "Even if we review the constituents, we do not think that the continuity of the Topics index will be lost and the index will not change significantly."