The second phase of the TOPIX review is gathering pace, shifting to stock selection that emphasizes liquidity and free-float market capitalization. Existing constituents are being removed and new additions are expected, with a broad impact anticipated, including on Prime-listed stocks.
In the second phase of the TOPIX review, beginning at the end of October, stocks will be selected with an emphasis on indicators of trading activity and free-float market capitalization. TOPIX currently has more than 1,600 constituents, but some stocks are expected to have their weights reduced each quarter, with around 700 stocks thought likely to be excluded. The second-phase review is expected to be completed in July 2028, narrowing the final number of constituents to approximately 980.
Under the new inclusion rules, which will also cover Prime Market stocks, stocks listed on the Standard and Growth markets will be eligible for inclusion, potentially creating a structure more likely to attract fund flows from across the TSE. マクドナルドホールディングス, セリア, フェローテックホールディングス and GO were reported to have risen on expectations of new inclusion.
As multiple stocks are affected by TOPIX movements, index-linked funds are estimated at approximately ¥160 trillion. The rule changes are expected to create a situation in which companies will need to work to improve their market valuation. Attention will now focus on the performance of stocks excluded from and newly added to the index.