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Nikkei: Japanese stock marketPRESENTED BY:

AICHA DIOP

AMINATA FAYE

AMINATA FALL MBOUP

MAMADOU RAMATA BAH

2PLAN

Introduction

Conclusion

I- Presentation of the Nikkei

II-Overview of the stock market• Components• Weight of sectors• Index calculation• Investing in Nikkei

Nikkei and the Global crisis• Effects of the GB in a stock market

• In Nikkei

3Introduction

A stock market is a public market for the trading of stock and derivatives at an agreed price.

Japan is know to be one of the leading country, it is the third economic power behind China

We will present in detail the Japanese's stock exchange

4Presentation

The Nikkei 225/Nikkei/ Nikkei index/ Nikkei Stock Average is a stock market index for the Tokyo Stock Exchange (TSE)

It is a price-weighted average (the unit is yen)

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

Daily basis by the newspaper Nihon Keizai Shimbun (Nikkei)

Updated every 15 seconds during trading sessions

Periodic review of Components once a year in October

6NIKKEI PRICES

7 Top Components

Toyota

Sony

Hitachi

Mizuho financial group

Nissan

Toshiba

Mitsubishi

Nippon

Suzuki Motor

Panasonic

8Weight of the sectorsSectors WeightsIndustrial goods and services 26%Retail 11%Technology 11%Personal and Household Goods 10%Heath care 9%Automobiles and parts 7%Chemicals 4%Food and beverage 4%Financial services 4%Basic Resources 3%Construction and Materials 2%Telecommunications 2%Media 2%Travel and leisure 2%Banks 1%Insurance 1%Utilities 1%Oil and Gas 0%Total 100%

26%

11%

11%

10%

9%

7%4%

4%

4%3%2%2%2%2%1%1%1%

100%

Weight of Sectors

Industrial goods and services

Retail

Technology Personal and Household Goods

Heath care Automobiles and partsChemicals Food and beverageFinancial services Basic ResourcesConstruction and Mate-rials

Telecommunications

Media Travel and leisureBanks InsuranceUtilities Oil and GasTotal

9Economic bubble

bubble Economy is an economy in which trade takes place in large volumes with a discrepancy between the price and the intrinsic value of the product.

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11Index calculation

Nikkei 225 takes just the share price and its predetermined par value.

A divisor is then used to ensure continuity in the index to ensure that events such as stock splits, dividends and changes in constituents do not distort the index. 

12Investing in Nikkei

There are several ways for international investors to gain exposure to the Nikkei 225:

using exchange-traded funds (ETFs)

trading on the Tokyo Stock Exchange (TSE).

can also opt to purchase individual components of the index on the TSE

While some of these components trade as American Depository Receipts (ADRs) on U.S. exchanges, most are only available on the TSE.

13Stock market and financial crisis

Sometimes the market seems to react irrationally to economic or financial news. This may 'temporarily' move financial prices away from their long term aggregate price 'trends'. (Positive or up trends are referred to as bull markets; negative or down trends are referred to as bear markets). Over-reactions may occur—so that excessive optimism (euphoria) may drive prices unduly high or excessive pessimism may drive prices unduly low.

Nikkei is more likely a bear market

14Effect on the Global on Nikkei

The Nikkei recorded a decline of 4 percent for the overall in one day on several occasions

Spending in the U.S. increases lead to Japanese stocks increase

Small decrease in American jobs – 1% decline in Nikkei

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Conclusion

Japan holds very large market shares in high-technology industries such as electronics, industrial chemicals, machine tools, electronic media and (in recent years) aerospace. Construction has long been one of Japan's largest industries, with the help of multi-billion-dollar government contracts in the civil sector. These industries make Japan a major economic global power. 

NIKKEI is experiencing many ups and down as all financial markets but it gives the Japanese economy an added value and it is worth investing on it.

16SOURCES

http://investing.money.msn.com/investments/market-index/?symbol=%24JP%3aN225

http://www.investopedia.com/terms/n/nikkei.asp

https://www.google.sn/search?q=Chart+of+Nikkei+prices+since+2000&source=lnms&tbm=isch&sa=X&ei=E7AAU7_ZHOi47Abng4GgCQ&ved=0CAcQ_AUoAQ&biw=1821&bih=889&dpr=0.75

http://www.tradingeconomics.com/japan/stock-market

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=JP%3ANIK

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Happy Investing!!!Thank you for your kind

attention!!!