Nikkei Stock Average to Include Nomura Research, Ryohin Keikaku in October

Nikkei's Move Towards Greater Inclusivity

The Nikkei Stock Average (Nikkei 225), a widely-followed index of the 225 largest Japanese companies, is expanding its constituents to include two new members: Nomura Research Institute and Ryohin Keikaku. The changes will take effect on October 1, 2023.

Benefits of Inclusion

Inclusion in the Nikkei 225 brings several benefits to companies, including: * Increased visibility and recognition: The Nikkei 225 is one of the most closely watched stock market indices in the world, providing significant exposure to listed companies. * Enhanced liquidity: Inclusion in the index often leads to increased trading volume and liquidity, making it easier for investors to buy and sell shares. * Potential for share price appreciation: Historically, companies added to the Nikkei 225 have experienced positive share price movements.

Nomura Research Institute and Ryohin Keikaku: Profiles

Nomura Research Institute (NRI) is a leading provider of consulting, technology, and outsourcing services in Japan and globally. The company has a strong track record in areas such as financial services, healthcare, and digital transformation. Ryohin Keikaku, known for its MUJI brand, is a global retailer specializing in household goods, apparel, and food. The company is renowned for its minimalist design philosophy and commitment to sustainability.

Impact on the Nikkei 225

The addition of Nomura Research Institute and Ryohin Keikaku to the Nikkei 225 is expected to: * Reflect the changing Japanese economy: The inclusion of companies from the consulting and retail sectors signals the evolving nature of Japan's business landscape. * Increase sector diversification: The new constituents will further diversify the Nikkei 225, which has a heavy concentration in manufacturing and technology companies. * Attract new investors: The inclusion of these companies may attract a broader range of investors interested in investing in Japan's growing consulting and retail sectors.

Conclusion

The inclusion of Nomura Research Institute and Ryohin Keikaku in the Nikkei 225 is a significant development that reflects the changing Japanese economy and the index's commitment to representing the broader business landscape. The move is likely to benefit both the included companies and the index itself.