First TOPIX periodic rebalancing expected to add McDonald Japan, GO Inc, Trial Holdings among new inclusions, major domestic brokerages forecast

The first periodic rebalancing of the TOPIX index is scheduled for late October. Daiwa Securities released its rebalancing forecast as of the reference date on the 2nd.

The rebalancing involves two key criteria: expanding the universe of TOPIX constituent candidates to include the Prime, Standard, and Growth markets, and selecting constituents based on liquidity standards, namely annual trading turnover ratio and free-float market capitalization.

Daiwa Securities currently projects about 35 new additions and about 680 deletions. Following the initial rebalancing, TOPIX could comprise about 990 constituents.

Among candidates for new inclusion from the Standard Market are McDonald's Holdings Company(Japan), Ltd. <2702>, Ferrotec Corporation <6890>, Seria Co., Ltd. <2782>, TOEI ANIMATION CO., LTD. <4816>, and YONEX CO., LTD. <7906>.

From the Growth Market, candidates cited include GO Inc. <581A>, Trial Holdings Inc. <141A>, freee K.K. <4478>, PowerX, Inc. <485A>, MTG Co., Ltd. <7806>, Timee, Inc. <215A>, Astroscale Holdings Inc. <186A>, QD Laser, Inc. <6613>, Synspective Inc. <290A>, and TIER IV, Inc. <593A>.

Meanwhile, among deletion candidates with relatively large free-float market capitalizations, names cited include MEDLEY, INC. <4480>, Broadleaf Co., Ltd. <3673>, Tsukuba Bank, Ltd. <8338>, SHINNIHON CORPORATION <1879>, and Ichiyoshi Securities Co., Ltd. <8624>.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.