Nikkei falls as index rejig hits losers

TOKYO, Sep 6 (Reuters) The Nikkei average fell 0.2 percent on Wednesday as Nippon Flour Mills Co. Ltd. and movie producer Toei Co.

Ltd. lost more than 3 percent as they will be ousted from the index next month.

The index compiler, Nihon Keizai Shimbun Inc., plans to replace the two stocks with real estate firm Tokyu Land Corp. and movie producer Toho Co. Ltd. in an annual rejig on Oct. 2.

Susumu Abe, manager at Mito Securities' information and investment department, said setting aside individual stocks' movements related to the Nikkei's changes, the market overall looks resilient.

''Buying interest looks consistent despite after the market hit a three-month closing high for the second straight day yesterday,'' he said.

The Nikkei was down 33.06 points at 16,352.90 as of 0102 GMT. The broader TOPIX index was down 0.08 percent at 1,650.04.

Shares of baby goods makers, such as baby stroller maker Combi Corp., faced a flurry of sales as investors grabbed profits in the stocks after Japan's Princess Kiko gave birth to a baby boy early on Wednesday.

Having run up in the lead up to the birth, Combi sank 8.5 percent to 900 yen.

Shares of Nippon Flour Mills fell 3.5 percent to 531 yen and movie producer Toei lost 3.5 percent to 881 yen.

Shares in Tokyu were down 0.9 percent at 1,082 yen and those of Toho were up 1 percent at 2,520 yen.

Among shares which had been seen as candidates to join, retailer Yamada Denki Co. Ltd. slumped 4.8 percent to 12,300 yen and financial services firm SBI Holdings Inc. dropped 3.5 percent to 45,350 yen.

In contrast, general contractor Kumagai Gumi Co. Ltd. surged 13.2 percent to 301 yen as the stock keeps its place in the Nikkei despite earlier expectations that it would be deleted due to a lack of liquidity.

Shares in Mitsubishi Heavy Industries Ltd. gained 1.4 percent to 525 yen after business daily Nihon Keizai reported on Wednesday the Japanese government will pick up the tab for 30 percent of costs of a project led by the machinery maker to build the first Japan-made passenger jet.

REUTERS DH PM0726