Japan Exchange Group (JPX) announced on March 30 that it would calculate and make public “JPX Prime 150 Index”, a new index consisting of 150 listed companies at its prime market from July 3.
The index comes to consist of 150 listed companies using two parameters: equity spread, difference between return on equity (ROE) and cost of equity, and price book-value ratio (PBR) from among top brands of market capitalization. The concept is “The index consists of the representative companies in Japan that are estimated value creation”.
Under the above two parameters, each seventy-five companies will be selected from among about 1,800 listed companies at the prime market. PBR is one of parameters that are estimated future of company and the number of listed companies at the prime market whose PBR is bigger than one is about 900. Replacement of composite is scheduled every August, once a year. Composite and its calculation procedure including selection criteria come to be made public by calculation date. Also, market capitalization at the prime market is about 70,000 million yen and it of 150 listed companies to be selected as composite of the index is expected to be about 35,000 million yen.
The transition of prototype for the outline at the present is as follows.

（Futures Tribune・issued April 04, 2023・no.3207）