The long feared worldwide cataclysmic collapse has probably begun. We are in uncharted territory on the downside, just as we were in uncharted territory on the upside. Downside is defined as value can not go below zero.
Our now much reduced Softbank position is locked in due to limit downs. Any brave buyers of QQQ puts out there?
Monday, May 22, 2000
Stocks Open Sharply Down On Heavy Tech-Share Selling
TOKYO (Dow Jones)--Japan's Nikkei average has opened lower Monday on heavy selling of technology issues following a Friday's decline in U.S. stock prices.
At 0031 GMT, the Nikkei Stock Average of 225 selected issues was down 449.30 points at 16408.87. It closed 156.31 points lower Friday.
Friday's news that consumer credit company Life Co. filed for creditor protection with the Tokyo District Court with liabilities of around 966 billion yen is also hurting market sentiment.
Many technology stocks are ask-only, including Softbank, Yahoo Japan, Oracle Corp. Japan and Hikari Tsushin.
In the U.S. Friday, The Dow Jones Industrial Average declined 150.43 points to 10626.85 and the Nasdaq Composite Index slipped 148.31 points to 3390.40.
"Japanese investors are very concerned that foreign investors have been huge sellers recently," said Tsuyoshi Nomaguchi, a strategist at Daiwa Securities. That selling is said to be motivated by the need to lock in profits in Japan because of declines in U.S. share prices.
Nomaguchi thinks the Tokyo Stock Price Index of all First Section-listed companies could drop as low as 1500. In early trade, it's 46.36 points lower at 1532.01.
Nissan Motor is up 17 yen at 523 yen after it reported Friday it expects a group net profit of 60 billion yen for the current fiscal year through March 2001, a turnaround from the year-ago loss of 684.36 billion yen.
Players warn that a stronger yen could be a danger for export issues ahead. A weaker dollar reduces the value of overseas profits when translated into yen.
Toyota and Honda are both down in early trade. |
