Nintendo ‘could miss out on Nikkei’

<p>The Nikkei may not include Nintendo.</p>

Video game company Nintendo may be set to miss out on an addition to the Nikkei index, according to analysts.

It was recently revealed that some of the firms that are currently listed on the Osaka Securities Exchange could be added to the Nikkei after the bourse merges with the Tokyo Stock Exchange on July 16th.

But experts from Nomura Holdings and Mizuho Financial Group believe Nintendo could miss out on the promotion due to the likely impact on the rest of the Nikkei, reports Bloomberg.

"The inclusion of highly priced stocks will impact other companies on the measure and even the Nikkei 225 NKY stock average as a whole. This may be what keeps it off the benchmark," wrote Nomura's Izumi.

Should it be added to the index, Nintendo would be likely to become the fourth-most influential stock on the Nikkei 225, behind Fast Retailing Co., Softbank Corp and Fanuc Corp.

The Nikkei added 1.3 per cent today to record a one-month high and its strongest run of gains since May.

Learn about the Asian markets and CFD trading at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.