Toshiba to be removed from Nikkei Tokyo stock index
Tokyo (NTP) Struggling Japanese electronics firm Toshiba is now to be removed from the Nikkei stock index. This follows the Tokyo Stock Exchange’s decision to downgrade Toshiba shares from its 1st to 2nd section on August 1st. That’s after the company said its debt exceeded assets as of the end of March. The key index consists of 225 leading stocks. Toshiba will be replaced by major precision equipment maker Seiko Epson. Nikkei newspaper officials said this is the first time for Toshiba shares to be excluded from a key index since 1950. That’s when the Nikkei index’s predecessor was launched. Toshiba shares will continue to be traded after reassignment to the TSE 2nd section. But if the company falls into negative net worth again at the end of next March, it will face delisting based on the Exchange’s rules.