Nikkei 225

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Nikkei 225

Nikkei 225 (日経平均株価 Nikkei heikin kabuka?, 日経225) is a stock market index for the Tokyo Stock Exchange (TSE). It has been calculated daily by the Nihon Keizai Shimbun (Nikkei) newspaper since 1950. It is a price-weighted average (the unit is Yen), and the components are reviewed once a year. Currently, the Nikkei is the most widely quoted average of Japanese equities, similar to the Dow Jones Industrial Average. In fact, it was known as the "Nikkei Dow Jones Stock Average" from 1975 to 1985.[1]

The Nikkei 225 began to be calculated on September 7, 1950, retroactively calculated back to May 16, 1949.

The Nikkei 225 Futures, introduced at Singapore Exchange (SGX) in 1986, the Osaka Securities Exchange (OSE) in 1988, Chicago Mercantile Exchange (CME) in 1990, is now an internationally recognized futures index[2].

The Nikkei average hit its all-time high on December 29, 1989 when it reached an intra-day high of 38,957.44 before closing at 38,915.87. Its high for the 21st century stands just above 18,300 points.

Another major index for the Tokyo Stock Exchange is the Topix.

Contents

[edit] Weighting and modifications

Stocks are weighted on the Nikkei 225 by giving an equal weighting based on a par value of 50 yen per share. Events such as stock splits, removals and additions of constituents impact upon the effective weighting of individual stocks and the divisor. The Nikkei 225 is designed to reflect the overall market, so there is no specific weighting of industries.

[edit] Changes to the components

Stocks are reviewed annually and announcements of review results are made in September. Changes, if required, are made at the beginning of October. Changes may also take place at any time if a stock is found to be ineligible for the Stock Average (e.g. delistings, etc.). All proposed changes will be announced in Nikkei's Japanese newspapers and will appear on NNI.

After a stock has been replaced, the divisor is reviewed and modified to ensure a smooth transition of the stock index.

[edit] Components

As of December 2008, the Nikkei 225 consists of the following companies: (Japanese securities identification code in parentheses)

[edit] Foods

[edit] Textiles & Apparel

[edit] Pulp & Paper

[edit] Chemicals

[edit] Pharmaceuticals

[edit] Oil & Coal Products

[edit] Rubber Products

[edit] Glass & Ceramics

[edit] Steel Products

[edit] Nonferrous Metals

[edit] Machinery

[edit] Electric Machinery

[edit] Shipbuilding

[edit] Automotive

[edit] Precision Instruments

[edit] Other Manufacturing

[edit] Fishery

[edit] Mining

[edit] Construction

[edit] Trading Companies

[edit] Retail

[edit] Banking

[edit] Securities

[edit] Insurance

[edit] Other Financial Services

[edit] Real Estate

[edit] Railway/Bus

[edit] Other Land Transport

[edit] Marine Transport

[edit] Air Transport

[edit] Warehousing

[edit] Communications

[edit] Electric Power

[edit] Gas

[edit] Services



[edit] References

  1. ^ Nikkei Definition via Wikinvest
  2. ^ Nikkei Net Interactive

[edit] External Links

Retrieved from "http://en.wikipedia.org/wiki/Nikkei_225"
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