Nikkei announced on Thursday that Japan's chipmaker Kioxia Holdings Corporation and Pan Pacific International Holdings, which operates the 'Don Quijote' discount stores, will be officially included in the Nikkei 225 Stock Index as of April 1.
Nikkei announced on Thursday that Japan's chipmaker$Kioxia Holdings (285A.JP)$and Pan Pacific International Holdings, which operates the 'Don Quijote' discount stores,$Pan Pacific International Holdings (7532.JP)$will be officially included in the$Nikkei 225 (.N225.JP)$stock index.
The index compiler stated that memory manufacturer Kioxia was selected due to its exceptionally high liquidity, while Pan Pacific's inclusion resulted from an adjustment of constituent stocks across various industry sectors. Meanwhile,$GS Yuasa (6674.JP)$ and$Casio Computer (6952.JP)$will be removed from the index.
As passive funds tracking the index will adjust their buying and selling activities according to the index changes, this adjustment in constituent stocks may impact the share prices of the affected companies.
Benefiting from increased memory prices driven by artificial intelligence demand, Kioxia's stock price has surged 95% this year, making it one of the best-performing stocks globally. Pan Pacific International Holdings' shares have also risen by approximately 10%, in line with the Nikkei 225 Index.
Hiroki Takei, strategist at Resona Holdings, stated, 'From a supply and demand perspective, inclusion in major indices tends to benefit individual stocks.' He added that given the 'broad-based pullback' experienced by the Japanese stock market in recent days, this inclusion could serve as a particularly positive catalyst.
Editor/Rocky