Japan Exchange Group outlined plans to narrow the TOPIX constituent base in its revamp at the end of October. Newly added constituents have come under selling pressure in the market as buying catalysts were seen as exhausted.
Japan Exchange Group announced the constituents of TOPIX, which will be revamped at the end of October. Unlike the previous all-inclusive index, the methodology will be revised to narrow the constituent base and periodically replace constituents.
The new composition will also include stocks from the Standard Market, which is centered on mid-sized companies, and the Growth Market, which is centered on emerging companies. However, newly added constituents came under selling pressure after their buying catalysts were temporarily seen as exhausted.