Nikkei Breaks 16000 Barrier
Real-Estate Bulls Lead Tokyo Share Market To Five-Year High
By KAZUHIRO SHIMAMURA
DOW JONES NEWSWIRES
December 22, 2005
TOKYO -- The Nikkei Stock Average briefly broke above 16000 for the first time since October 2000 and the overall Tokyo share market ended at a fresh five-year high as bullishness toward real-estate shares spread to the market as a whole.
The Nikkei is now up nearly 39% for the year to date, one of the largest gains among global stock markets.
Shares of exporters and domestic business-oriented firms climbed in the afternoon, helping the 225-share Nikkei surge 316.31 points, or 2%, to 15957.57, after rising as high as 16010.17 during the day. It was the third-largest gain this year in terms of points.
"Investors don't need to worry too much about finding the right timing to sell even when the market shows signs of retreat," said Nikko Cordial Securities product manager Hiroichi Nishi.
He said positive factors abound, including the government's forecast that deflation would end in the year starting April, expectations that the economy would continue to improve, and that new investment trusts being set up at the end of this month would increase demand for shares.
Real-estate stocks were especially strong on buying by retail investors and brokerage traders, after news Tuesday that real-estate developer Mori Trust was holding talks with American International Group to sell a large plot of property in central Tokyo.
Mitsubishi Estate jumped 9.1% after hitting a 15-year high, while NTT Urban Development surged 15% to a record high.
The Topix index of all the Tokyo Stock Exchange First Section issues rose 22.39 points, or 1.4%, to 1636.38, the highest close since May 2000.
Among other real-estate shares and companies with large real-estate holdings, Pacific Management jumped 15%, Keihin Electric Express Railway advanced 12%, and Daibiru rose 11%.
West Japan Railway added 6.7% and Odakyu Real Estate gained 5.7%. Mitsui Fudosan edged down 0.4% after rising 7.4% the previous day. Similarly, Sumitomo Realty rose 0.6% following a 6.8% gain Tuesday.
Chiyoda climbed 13% on news it and Technip will sign a contract to build two liquefied natural-gas plants in Qatar and receive $2.8 billion for the works.
Kinki Coca-Cola Bottling soared 17% and Coca-Cola West Japan rose 7.8% after they said they will work toward an operations merger.
On the Tokyo exchange's Mothers market for start-up companies, J-Com shares fell for the first time since trading in the issue resumed Dec. 14 following a massive botched order on its debut day the previous week. By Tuesday, the issue's price had nearly tripled from its debut price.
Shares on the Osaka exchange's Hercules market for start-up companies ended mostly lower on profit-taking. Dream Technologies dropped 12% after announcing its planned issue of convertible bonds and share warrants. Aeria gained 4.3% on its subsidiary Gamepot's initial public offering on the Sapporo exchange.
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