The Tokyo Stock Exchange, Inc. (TSE) announced today its intent to launch new indices, TOPIX 1000 and Mothers Index,, as well as some measures to make its existing indices more attractive. These actions reflect opinions from TOPIX users and TSE expects the indices to provide new measure in the Japanese stock market as well as to contribute to the development of financial products.
1. TOPIX 1000 is newly added to the TOPIX New Index Series
Indices in the TOPIX New Index Series, such as TOPIX Core 30, TOPIX 100 and TOPIX 500, are capitalization weighted average indices (identical to TOPIX) and are widely used as sub-indices of TOPIX. Component stocks of the indices series are reviewed annually according to market capitalization and liquidity on the 1st section of the TSE.
To further satisfy users needs for sub-indices of TOPIX, TSE decided to develop TOPIX 1000 and add it to the TOPIX New Index Series (see Appendix).
The methodology of TOPIX 1000 and starting date will be announced this August.
2. Launch of Mothers Index
TSE's Mothers market (market of the high-growth and emerging stocks) was established on November 11, 1999 in order to provide venture companies access to funds at an early stage of their development and to provide investors with more diversified investment products. 51 companies are listed on Mothers as of today.
Upon growing demands to introduce a comprehensive measure of the change on the Mothers in accordance with the increase in companies listed on the market, TSE decided to launch Mothers Index, a capital weighted index based on all stocks listed on Mothers.
The methodology of the Mothers Index and starting date will be announced together with TOPIX 1000 this August.
3. Change of criteria for Sized-Based TOPIX Sub-indices
The Sized-based TOPIX Sub- indices consist of three indices created by dividing the component stocks of TOPIX into three categories according to the criteria below.
| Large-Sized Stocks : | Listed shares of 200 million or more, or listed units of shares of 200 thousand or more |
| Medium-Sized Stocks : | Listed shares of 60 million or more but less than 200 million, or listed units of shares of 60 thousand or more but less than 200 thousand |
| Small-Sized Stocks : | Listed shares of less than 60 million, or listed units of shares of less than 60 thousand Large-Sized |
TSE will change the current criteria based on listed units of shares and replace it with market capitalization and liquidity criteria. TSE considers it important to give investors sufficient time to understand and prepare for the change and thus the change is planned for 2005. Details on the new criteria will be announced at a later date.
4. Real-Time Dissemination of Tokyo Stock Exchange REIT Index
Tokyo Stock Exchange REIT Index, which began on TSE's web-site from April this year, is a capitalization-weighted index based on all J-REITs listed on the TSE and provides a comprehensive measure of price changes on TSE's REIT market.
TSE will provide the Tokyo Stock Exchange REIT Index on a real-time basis through TSE's Market Information System called MAINS starting this autumn. This will enable users to access the index through their vendor's display in addition to the TSE's web-site.
Commencement for real-time dissemination of this index is expected to occur in the autumn of 2003. The specific data will be announced in the future.
5. Development of Customized Indices
As investment styles advance and diversity, the demands to develop and introduce customized indices designed to meet user's unique investment needs grows larger. Thus, TSE will begin research and development for customized index such as an SRI index or indices based on user selected constituents on the TSE. Should you have any ideas or proposals on this matter, please contact the Information Services, Index Group at Tokyo Stock Exchange,Inc.
 Tokyo Stock Exchange, Inc. Information services
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TEL: +81-3-3666-0141(Rep.) |
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FAX: +81-3-3663-0626 |
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E-mail :databank-index@tse.or.jp |
*This English version press release is not an officially accurate translation of the original Japanese document. In the case where any differencies may occur in the English version, the original Japanese document will prevail.TSE shall not accept any responsibility for damages caused by any errors, inaccuracies, misunderstandings or misspelling with regard to the translation of the document. This document may be used only for reference purposes. The Tokyo Stock Exchange, Inc. maintains the right to claim compensation from violators for any damages it may suffer from the violation of these conditions
TOPIX New Index Series
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