TOPIX constituent changes will gather pace next month, with the number of constituents expected to fall sharply as the new criteria take effect. Additions from outside the Prime Market are under consideration, while concern is spreading among companies facing removal from the index and fears have been raised that selling could intensify and share prices fall.
TOPIX, a key indicator of Japan's domestic stock market alongside the Nikkei Stock Average, is set for a major constituent reshuffle next month, with the number of constituents expected to fall sharply as the new criteria take effect.
The number of constituents added under the new criteria is expected to decline significantly, prompting securities firms to closely monitor developments.
While additions from outside the Prime Market are also under consideration, concern is spreading among companies that could be removed from the index, and selling pressure may increase, reports say.