To: WhySoSoon who wrote (7175 ) 6/16/1999 12:36:00 AM From: Spytrdr Respond to of 13953
Softbank Rises as Japanese Nasdaq Seen Strengthening Portfolio Bloomberg News June 15, 1999, 6:51 p.m. PT Softbank Rises as Japanese Nasdaq Seen Strengthening Portfolio Tokyo, June 16 (Bloomberg) -- Softbank Corp.'s stock rose as much as 7.2 percent after the Internet investment company said it will work with the National Association of Securities Dealers to establish a Japanese version of the NASD's Nasdaq Stock Market. The Tokyo-based company, which has grown from Japan's biggest software distributor into the one of the world's largest financiers of online businesses, rose as much as 1,260 yen to 18,870 in morning trading of 773,200 shares. The shares recently traded at 18,620. Investors bought shares on expectations the establishment of a Japanese Nasdaq will provide fertile ground for Softbank's affiliates to go public. Softbank, which has stakes in more than 100 unlisted Internet companies, has accumulated $11 billion in unrealized gains on a series of early bets on fast-growing online ventures including Yahoo! Inc. ''In the middle term, this new market will help build up Softbank's latent profits by accelerating the pace of share offerings by group companies,'' said Hiromi Koyama, an analyst at Taiheiyo Securities Co., who rates Softbank's stock ''hold.'' He added, however, that ''the move will have no effect on short-term earnings.'' Softbank's billionaire founder Masayoshi Son said last month he expects seven of the company's affiliates to go public over the next six months. The new market, called Nasdaq-Japan market, will offer extended-hours trading in Nasdaq stocks and in newly public Japanese companies. Organizers plan to begin operating in the fourth quarter of next year, initially listing between 50 and 100 of the largest Nasdaq stocks. Softbank's affiliation with a Japanese Nasdaq may also make the company more attractive as a partner for Internet ventures. ''The positive development for Softbank is that it gives them more credibility,'' said Mahendra Negi, an analyst at Merrill Lynch Japan Inc., who rates Softbank's stock ''buy.'' ''A startup company here in Japan which is considering taking venture capital financing from (several) investors might actually opt for Softbank because they think they are going to able to list on this Nasdaq Japan market.'' Nadsaq was founded in 1971 and is today the second-largest U.S. stock market, listing 4,449 companies.