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Technology Stocks : Softbank Group Corp -- Ignore unavailable to you. Want to Upgrade?

To: Edwin S. Fujinaka who wrote (3092)	1/6/2000 2:29:00 AM
From: Edwin S. Fujinaka	Respond to of 6018

A couple of comments from the Nikkei Net on the market activity <G>: Thursday, January 6, 2000 Stock Outlook: Drop Of 20-30% Likely In Correction TOKYO (Nikkei)--Some technology shares such as Softbank Corp. (9984) ran up too far, too fast late last year, so it will be not surprising if those issues decline 20-30% in the near future as they undergo a correction, Norio Imanaka, an analyst at Commerz Securities (Japan) Co., maintains. With the year 2000 problem now in the past, he expects better market fundamentals this year than last because businesses will begin major investments in information-related systems. Initial public offerings are expected to continue to hit the market, so investors will be even more selective in making investments, he adds. Imanaka recommends Obic Co. (4684) and OBC Business Consultants Ltd. (4733). He expects these shares to rise by 30% within a year. (The Nikkei Financial Daily Thursday edition) -------------------------------------------------------------------------------- Thursday, January 6, 2000 Stock Market Outlook: Rebound To Follow Correction TOKYO (Nikkei)--The market weakness in Japan, Europe and the U.S. on Jan. 4 and 5 can be traced to fears of a rise in U.S. interest rates, which chilled the overheated worldwide buying of information-related issues, says Kazuhiro Miyake, chief strategist at Fuji Securities Co. The Dow Jones Industrial Average could fall to about 10,000, while the Nikkei Stock Average could drop to 17,000, Miyake says. In the medium term, however, there is little reason to fear a steeper decline, he predicts. The U.S. Federal Open Market Committee may well raise interest rates in February but a hike will be limited to just one time, Miyake says. And Japanese stocks will also come back after the U.S. market correction factoring in rate hikes runs its course, he says. Domestically, the flow of funds from individual investors is expanding via investment trusts, and the Nikkei average could bounce back to 22,000 before year-end, according to Miyake. Information-related issues will remain the market leaders as Japanese manufacturers are only now starting to make the investments they need for the transformation to the "information society," he says. Before long, the market will also take another look at the growth-sensitive issues now in the middle to lower tiers, but it would not be a good idea to shift funds out of information-related stocks and into that sector, Miyake says. Companies like Sony Corp. (6758) and Softbank Corp. (9984), which are moving their business models onto the Internet, are drawing attention, he says. (The Nikkei Financial Daily Thursday edition) --------------------------------------------------------------------------------