TOKYO -- Three new constituents will be added to the Nikkei Stock Average, or Nikkei 225 -- Disco, Socionext and Zozo -- on April 1, while Takara Holdings, Sumitomo Osaka Cement and Pacific Metals will be deleted, Nikkei said on Monday.
The index provider said in a statement that the reshuffle is part of its semiannual review, adding that Disco and Socionext were chosen due to their relatively high liquidity and Zozo in consideration of sector balance. The three companies being deleted, including Takara Holdings, will be removed due to their low liquidity.
In the replacement on April 1, Nikkei will apply price adjustment factors (PAF) of 1 to Socionext and Zozo and 0.2 to Disco. The PAF for Nitori Holdings will be changed from 0.3 to 0.5. PAF is a conversion rate by which each constituent's individual share price is multiplied to calculate the composite value of the Nikkei 225.
The reshuffle affects two other indexes. The Nikkei 225 Climate Change 1.5°C Target Index will exclude Takara Holdings, Sumitomo Osaka Cement and Pacific Metals on April 1 and replenish their slots at the periodic review scheduled at the end of April. The Nikkei 225 Domestic Exposure 50 Index will strike Sumitomo Osaka Cement off the list, and its constituents will return to 50 at the end of October.
The PAFs of 12 other constituent stocks of the Nikkei 225, including Mitsubishi Heavy Industries, Mitsui Fudosan and Suzuki Motor, will also be changed on March 28 due to their stock splits, Nikkei said.
For more details, please visit the Nikkei indexes website.
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