Tokyo, Oct. 7 (Jiji Press)–Japan Exchange Group Inc. said Wednesday that it will add 35 companies, including 100-yen store operator Seria Co., to the Tokyo Stock Exchange’s TOPIX index as part of a component reshuffle starting at the end of this month. The exchange operator plans to periodically reshuffle TOPIX components based on market capitalization and liquidity criteria to promote a more active market. The new additions comprise 23 firms on the TSE’s Standard mid-tier section, including Seria, McDonald’s Holdings Co. (Japan) and Toei Animation Co., and 12 firms on the Growth section for startups, including taxi-hailing app operator Go Inc. Previously, components had been selected only from the former first section of the TSE, which was reorganized as the Prime section in 2022. The additions are set to increase the number of TOPIX components to 1,669 from the current 1,634. Meanwhile, 683 components that fail to meet criteria such as market cap will be designated as issues subject to transitional measures, and their weightings will be reduced in stages. If the companies show no improvement in a reevaluation to be conducted in October next year, they will be removed from the index at the end of July 2028. The second component reshuffle will be conducted in October 2028, then annually thereafter. END [Copyright The Jiji Press, Ltd.]
