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Investing.com-- Shares of Ibiden Co Ltd (TYO:4062) rallied on Tuesday after the electronics company was added to Japan’s benchmark Nikkei 225 index, while those of Nidec Corp (TYO:6594), the company it replaced, fell sharply.
Ibiden jumped as much as 21% to a record high of 13,145.0 yen, outpacing a 0.2% drop in the Nikkei 225.
The Nikkei said on Monday that Ibiden will replace electric motor maker Nidec Corp in the Nikkei 225 index, effective from November 5.
Nidec shares slid some 20% to 2,123.5 yen, their weakest level in six months. The company will also be deleted from several other Nikkei indexes, including the Nikkei Stock Index 300 and 500 stock average.
This was after the company was designated as a “security on special alert” by the Nikkei, with the exchange operator seeking clear improvements to the motor manufacturer’s internal controls amid a probe into allegations of irregular accounting practices.
The company had earlier in October canceled a share repurchase program due to the probe.