Eligible Stocks
Eligible stocks will be those of companies listed on the TSE 1st section as of the end of each July, and which have an accumulative length of listing and OTC registration of at least 6 months. Previously, stocks had to have been listed on the TSE for at least 6 months.
Listing of Holding Companies
Holding companies listed on the TSE 1st section will be assigned to the index sector of their highest-ranking subsidiary.
Listing Company A (Core 30)
Listing Company B (Large 70)
Holding Company D (Core 30)
Listing Company C (Small
Outline Of The New Stock Price Indices
The new stock price indices will be classified according to market capitalization and liquidity and based on all stocks listed on the first section of the Tokyo Stock Exchange. The new indices are TOPIX Core 30, TOPIX 100, TOPIX 500, TOPIX Small, TOPIX Large 70, TOPIX Mid 400.
Core 30
The 30 most liquid stocks with largest market capitalization.
Large 70
After the Core 30, the 70 most liquid and highly market capitalized shares.
Mid 400
Excluding TOPIX 100 stocks, these are the remaining shares in the TOPIX 500
Small
The 822 remaining stocks, outside the TOPIX 500.
Others
These stocks are not included in the new indices, and have only been listed for a short time.
Advantages Of The New Indices
Component stocks based on market capitalization and liquidity
The component stocks of the new indices are based on market capitalization and liquidity. As a result, the size of the component stocks of each index are in accordance with most investors' expectations.
In order to accurately reflect the market, the component stocks will be revised every September.
Transparency of selecting component stocks
In order to avoid ambiguous selection of component stocks, the decision of whether or not to include a stock in the indices will be based purely on numerical value such as market capitalization and trading value.
Well-known component stocks
The large companies whose stock makes up the "Core 30"and"TOPIX100" indices are well known not only to domestic investors, but also to foreign investors.
Calculation Method
The market capitalization weighted average will be calculated to 2 decimal places(the same as for TOPIX).
Base date
The index will be set at 1000 points, as of April 1,1998.
Calculation starting date
April 2,1998
Public Information
Tick movements will be transmitted by the TSE's market information system to securities companies and information vendors.
