Tokyo Stock Exchange: S&P/TOPIX 150

Tokyo Stock Exchange and Standard & Poor's, a division of The McGraw-Hill Companies, Inc. (NYSE: MHP) introduced a new equity index for the Japanese securities market. The new index, "S&P/TOPIX 150", a market capitalization weighted index, includes 150 highly liquid securities selected from each major sector of the Tokyo market, and represents approximately 70% of the market value of the Japanese equity market.

S&P/TOPIX 150 is part of S&P Global 1200, the new global index covering all seven major regions of the world. The S&P Global 1200 index includes S&P/TOPIX 150 for Japan, S&P 500 for the U.S. (500 stocks), S&P/TSE 60 for Canada (60 stocks), S&P Europe 350 for continental Europe and the U.K. (350 stocks), Asia/Pacific 100 (100 stocks) and Latin America 40 (40 stocks) .

Calculation Method

1. ConstituentsEligibility:

   To be eligible for inclusion in the S&P/TOPIX 150 index, stocks must be included in the TOPIX universe. Further, stocks are evaluated according to certain guidelines:

   • Domicile : A company must be incorporated in Japan or have its headquarters in Japan.
   • Size : Only larger companies, in terms of market value, are considered.
   • Liquidity : Only stocks which are actively and regularly traded are considered.

   Sectors: Standard & Poor's uses 10 economic sectors in index construction. These sectors are common across all Standard & Poor's indices, including the S&P 500.

   Change of constituents: Constituents are not changed on a regular basis.

2. Methodology

   The index is weighted by each constituent stock's market capitalization. The market capitalization of each stock is adjusted to exclude the value of shares held by large shareholders. The percentage of the total market capitalization included for index calculation purposes is called the "Investable Weight Factor (IWF)" which is determined by Standard & Poor's.

   Click here for Components stocks and IWF.

3. Base date

   The index is set at 1000 points, as of December 30, 1997.

   Note
   Index value (closing value) is posted on the TSE website.

   Click here for Market Data.

   Real time calculations are available on S&P's web-site and Reuters.

Reuters: