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Alert: Stocks plunge in Tokyo
United Press International - November 14, 1997 03:36
%FINANCIAL %STKS %TOKYO V%UPI P%UPI
TOKYO, Nov. 14 (UPI) - Stocks plunged in Tokyo on Friday amid growing
concern over the state of the nation's economy and instablity in the
financial sector.
After falling only 6.9 points on Thursday, the key Nikkei index of
225 selected issues dropped 344.75 points - 2.23 percent - to end the
week at 15,082.52, its lowest level for the year.
During the day the Nikkei briefly dropped below the benchmark 15,000
level, hitting a low of 14,966.13. It was the lowest level for the key
index since July of 1995.
Traders reported the price of Yamaichi Securities stock falling below
100 yen further dragged down investor sentiment and contributed to the
market's overall decline.
The Nikkei index moved between 14,966.13 and 15,371.83 during the
day.
The broader-based Tokyo Stock Price Index, which lost 1.39 points on
Thursday, fell 21.45 points - 1.79 percent - to end at the week at 1,
177.52.
''Investors engaged in selling bank shares and blue chip issues like
Sony on anxiety over the sluggish economy,'' said Kiyoshi Namai of Towa
Securities Compay. Namai added that an announcement by government
officials regarding economic stimulus measures did not have much
positive impact on the market.
Trading was an estimated 620 million shares, up from Thursday's 513.
43 million shares. Yamaichi Securities was the most traded stock for the
day.
The decline in Yamaichi's share price raised investor concerns that
the company might possibly go bankrupt. On Nov. 3, Sanyo Securtities
became the first major brokerage house to go bankrupt since World War
II. Troubles in the securities business have contributed to the
instability in Japan's financial services industry.
According to market analysts, the next resistance line for the key
index will be 14,782. At that level it is estimated that the stock
portfolios held by the top 20 Japanese banks will experience a latent
profit loss.
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