Electric-motor maker Nidec Corp. will join the Nikkei 225 Stock Average as the blue-chip gauge adds some of Japan’s better-known high-tech companies.
(Bloomberg) — Electric-motor maker Nidec Corp. will join the Nikkei 225 Stock Average as the blue-chip gauge adds some of Japan’s better-known high-tech companies.
The other additions in this year’s annual review are factory-automation firm SMC Corp. and Hoya Corp., which makes electro-optics products. Nidec wil be added Sept. 29 while SMC and Hoya will join the index on Oct. 3, Nikkei Inc. said in a statement on Monday
Deletions include textiles firm Unitika Ltd., fisheries company Maruha Nichiro Corp. and Oki Electric Industry Co. Meanwhile, Shizuoka Bank Ltd. will be removed and replaced by its new holding company Shizuoka Financial Group.
“It’s not that surprising,” said Ryuta Otsuka, a strategist at Toyo Securities Co. “It was what everyone had already expected,” he said, noting that Nidec shares gained Monday ahead of the news, and that Unitika and Maruha Nichiro have light weightings so their removal shouldn’t cause much disruption.
The Nikkei 225 briefly erased its year-to-date loss last month as Japanese stocks outperformed global peers thanks to the Bank of Japan’s easy-money policy and weakness in the yen, a boon for the nation’s exporters. The Nikkei 225 is currently down 4.1% on the year compared with a loss of 20% in the MSCI All Country World Index.
Like the Dow Jones Industrial Average, the Nikkei 225’s methodology has been criticized because its price-weighted nature makes it more prone to wild swings in stocks with higher prices. The stocks being added to the Nikkei all have share prices above the gauge’s current average of 4,381 yen per share.
(Updates throughout)
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
