Tokyo Stock Exchange to remove nearly 700 firms from Topix and add 35 in major reform
The Topix index will be composed of 986 stocks after the reshuffle.
Tokyo Stock Exchange (TSE) announces plans to significantly alter its Topix index, removing nearly 700 firms and adding 35 new companies. This major reform is part of the exchange's ongoing efforts to draw in more investors. Following the reshuffle, the Topix index will consist of 986 stocks, marking a reduction of approximately 40% compared to the current components, according to JPX Market Innovation and Research, a unit of Japan Exchanges Group.
This decision comes as the TSE progresses with the reform of its trading platform and aims to enhance corporate governance. The Topix serves as the primary index tracked by major institutional investors, including the Government Pension Investment Fund, which is the world's largest pension fund. Companies such as Trial Holdings, Workman, and Tier IV will be joining the index. Conversely, Pasona Group and Tsubaki Nakashima will be removed from the index.
The exchange intends to reduce the weightings of the companies being removed to zero by July 2028. The exchange will also conduct its second round of the regular reshuffle in October 2027.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
