AGL 40.00 Decreased By ▼ -0.21 (-0.52%)
AIRLINK 127.50 Decreased By ▼ -0.14 (-0.11%)
BOP 6.65 Decreased By ▼ -0.02 (-0.3%)
CNERGY 4.49 Increased By ▲ 0.04 (0.9%)
DCL 8.70 Decreased By ▼ -0.03 (-0.34%)
DFML 40.80 Decreased By ▼ -0.36 (-0.87%)
DGKC 85.61 Decreased By ▼ -0.50 (-0.58%)
FCCL 33.09 Increased By ▲ 0.53 (1.63%)
FFBL 64.30 Decreased By ▼ -0.08 (-0.12%)
FFL 11.83 Increased By ▲ 0.22 (1.89%)
HUBC 111.99 Decreased By ▼ -0.47 (-0.42%)
HUMNL 15.13 Increased By ▲ 0.32 (2.16%)
KEL 5.21 Increased By ▲ 0.17 (3.37%)
KOSM 7.60 Increased By ▲ 0.24 (3.26%)
MLCF 40.25 Decreased By ▼ -0.08 (-0.2%)
NBP 61.00 Decreased By ▼ -0.08 (-0.13%)
OGDC 192.50 Decreased By ▼ -1.68 (-0.87%)
PAEL 27.06 Increased By ▲ 0.15 (0.56%)
PIBTL 7.39 Increased By ▲ 0.11 (1.51%)
PPL 152.80 Increased By ▲ 0.12 (0.08%)
PRL 26.30 Increased By ▲ 0.08 (0.31%)
PTC 16.93 Increased By ▲ 0.79 (4.89%)
SEARL 85.00 Decreased By ▼ -0.70 (-0.82%)
TELE 7.60 Decreased By ▼ -0.07 (-0.91%)
TOMCL 34.46 Decreased By ▼ -2.01 (-5.51%)
TPLP 8.70 Decreased By ▼ -0.09 (-1.02%)
TREET 17.13 Increased By ▲ 0.29 (1.72%)
TRG 63.30 Increased By ▲ 0.56 (0.89%)
UNITY 28.00 Decreased By ▼ -0.20 (-0.71%)
WTL 1.31 Decreased By ▼ -0.03 (-2.24%)
BR100 10,107 Increased By 21.4 (0.21%)
BR30 31,153 Decreased By -16.9 (-0.05%)
KSE100 94,936 Increased By 172.2 (0.18%)
KSE30 29,437 Increased By 26.7 (0.09%)
Markets

Japan's Nikkei drops after BOJ's plan to buy only Topix-linked ETFs

  • The so-called NT ratio of the Nikkei and Topix dropped sharply to 14.84 from 15.04 on Thursday. It hit a record high of 15.68 earlier this month.
Published March 19, 2021

TOKYO: Japan's benchmark Nikkei fell as much as 1.9% on Friday, while the broader Topix hit a 30-year high as the Bank of Japan said it would only buy Topix-linked exchange traded funds after a review of its policy framework.

Nikkei share average fell 1.15% to 29,868.00 by 0436 GMT. The broader Topix gained 0.14% to 2,011.29, having briefly hit its highest level since 1991.

Following its two-day policy meeting, the Bank of Japan said it would only buy exchange-traded funds (ETF) that are linked to the Topix index.

The BOJ also said it will buy up to 12 trillion yen at most and also slightly broadened a trading band for its 10-year bond yield target, widely as expected.

Nikkei heavyweight Fast Retailing, the operator of Uniqlo clothing stores fell 4.6%. Another heavyweight SoftBank Group fell 2.01%.

The so-called NT ratio of the Nikkei and Topix dropped sharply to 14.84 from 15.04 on Thursday. It hit a record high of 15.68 earlier this month.

But some analysts said the Nikkei's underperformance will be fairly short-lived.

"The impact of the BOJ's move on the Nikkei will be limited," said Shingo Ide, chief equity strategist at NLI Research Institute. "It will contribute to a healthy correction in the NT ratio."

Comments

Comments are closed.