Tokyo (se) topix

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Develop and improve products. List of Partners vendors. TOPIX is a capitalization-weighted index that lists all firms in the "first section" of the TSE, a section that organizes all large firms on the exchange into one group. The second section of the TSE pools all of the smaller remaining companies. Compared to the Nikkei , or Japan's Nikkei Stock Average, the TOPIX is considered a more appropriate representation of all the Japanese stock markets because it reflects a fairer depiction of price changes and includes the largest companies trading on the TSE.

In comparison, the Nikkei is weighted by price and is composed of only the top blue chip companies listed on the TSE. TOPIX shows the current market capitalization of companies assuming that market capitalization as of the base date Jan. The measure is used to determine the overall trend in the stock market and is used as a benchmark for investors.

These categories are determined according to the industrial sectors defined by the Securities Identification Code Committee. They include but are not limited to, construction, textiles and apparels, nonferrous metals, machinery, electric power and gas, land and air transportation, retail trade, banks, securities and commodity futures, real estate, insurance, agriculture and forestry, pharmaceuticals, and iron and steel.

In a series of three phases, TOPIX transitioned from a system that weighted companies based on a collective total figure of outstanding shares to a system that weights companies based on the total number of shares available for trade. This is known as a free float. Although this transition is, essentially, a technicality, it has had a substantial impact on the actual weight of companies listed in the index.

This is because a large majority of companies in Japan also have significant holdings of shares in their business partners to maintain sophisticated and strong business alliances, and these shares are no longer included in the index's company weight calculation. The Japanese practice of business partners having close relationships with one another and sometimes taking equity stakes in each other is called keiretsu , which translated literally means "headless combine.

The capitalization-weighted index tracks the performance of 30 stocks in the TOPIX index that have large market capitalizations and are the most liquid. The index started on April 1, with a base value of 1, Investors cannot directly purchase an index.

The fund's investment objective is to construct a portfolio that is similar in composition to the TOPIX Core 30, providing corresponding price and yield performance. International Markets. Investing Essentials. Stock Markets. Dividend Stocks. Your Privacy Rights.

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Listen to this page. Component Issues. Calculation Method. Calculation Method Effective on April 4, Historical Index Value. Related Information. Change of update time The monthly component weight data as of the end of the month for TOPIX will be updated on or after pm Japan time on the last business day of the following month.

Ex Monthly component weight data as of the end of October will be updated on or after pm on the last business day of November. JPX Data Cloud. Contact Tokyo Stock Exchange, Inc. Tokyo Stock Exchange Index Guidebook. As of end of Listed Issues.