Iwamoto Sayumi (岩本 沙弓) points to changes in market structure as the backdrop to the Nikkei 225 holding above ¥70,000. She said the factors behind this include the exit of listed companies and inflows of capital.
The Nikkei 225 ended the Tokyo stock market session on the 7th at ¥70,035.71, down ¥648.27 from the previous day, recovering to the ¥70,000 level before profit-taking selling prevailed.
Iwamoto Sayumi (岩本 沙弓) cited structural changes in the market, in addition to fundamentals, as a factor supporting the Nikkei 225. The introduction and subsequent revisions of the Corporate Governance Code in 2015 and the reorganization of market segments in 2022 have increased the number of listed companies exiting the market, while the cost of maintaining a listing has become a heavier burden.
As the number of listed companies declines, Iwamoto Sayumi (岩本 沙弓) pointed out that capital is increasingly likely to become concentrated in a small number of companies of a similar overall size, making share prices more likely to rise. She also cited greater transparency in Japan's market for overseas investors as a factor behind capital inflows, expressing the view that structural changes are supporting the market.
Iwamoto Sayumi (岩本 沙弓) said that “the shape of Japan's stock market has changed” and believes that market transparency and the selection of listed companies will continue to affect capital flows.