Although the Nikkei ended Friday (in Japan) slightly up, Softbank closed down the 5000 yen limit to $727 equivalent US. That is close to the actual Thursday close in the US of $730. I guess we have one more session in Europe and one more in the US to close out the week. Most of the Softbank investors posting here seem relatively unconcerned by the 25% drop from the year end all time high. I guess I share that unconcern because we are still so far above my cost basis and few of us have held for more than a year.
Anyway, here's the comment on the Tokyo market from Nikkei Net:
Friday, January 7, 2000
Stocks End Slightly Higher; Domestic Shares Support
TOKYO (Dow Jones)--Japan's benchmark Nikkei stock average squeezed out a slight gain Friday as domestic demand issues and exporter shares gained to balance out weak high-technology issues falling in the wake of losses by their counterparts in the U.S.
The Nikkei Stock Average of 225 selected issues rose 25.14 points Friday to 18193.14 after a 374.28-point fall Thursday. The key cash index ended the latest fiscal year at 15836.59 on March 31, 1998 and finished the 1999 trading year at 18934.34.
The near-term March Nikkei futures contract ended up 270 points at 18170 on the Osaka Securities Exchange.
Softbank fell its daily limit of 5,000 yen to 76,600 yen. Kyocera also lost its maximum amount of 2,000 yen, leaving behind net sell orders at the end of trading. Nippon Telegraph & Telephone lost 20,000 yen to 1.65 million yen, while group companies NTT DoCoMo plunged 240,000 yen to 3.16 million yen.
"People are selling those shares which were overbought and buying those that are relatively cheap," said Kazunori Shimono, manager of the equity trading section at Tokyo-Mitsubishi Personal Securities.
High-technology stocks also fell sharply on the over-the-counter market.
Sony fell its daily limit of 2,000 yen to 23,700 yen. In addition to overall market concern about the direction of high-technology shares, the stock was hit by a report Thursday saying that Sony President Nobuyuki Idei suggested that his company's share price is inflated.
Participants expect the Nikkei average to stay within a range of 18000 and 18500 next week as the market continues to seek direction from U.S. shares. Another falloff in U.S. share prices could trigger further losses in Japan, Shimono said.
Solid demand kept such issues as Matsushita Electric Industrial and Hikari Tsushin afloat, however.
A weaker yen, as the dollar inched above the 105-yen level for the first time since Nov. 19, helped exporters like Honda, which gained 70 yen to 3,690 yen. Canon put on 220 yen to 3,770 yen, and Pioneer rose 170 yen to 2,890 yen.
In the broader market, advancers led decliners. On the Tokyo Stock Exchange's First Section, 706 issues rose, 495 issues fell and 143 ended unchanged from Thursday.
The Topix index of all the TSE First Section issues fell 10.58 points to 1599.01.
Volume on the First Section of the Tokyo Stock Exchange was estimated at 547.56 million shares, down from 574.24 million shares Thursday.
The paper and pulp, rubber, gas, and retail sectors benefited as investors stepped away from the battered high-technology issues.
Nippon Paper rose 56 yen to 663 yen, Kirin Brewery climbed 15 yen to 1,065 yen, and Shiseido climbed 97 yen to 1,616 yen.
Pharmaceutical issues Takeda, Sankyo, Yamanouchi, and Fujisawa also posted solid gains.
Seven-Eleven Japan gained 400 yen to finish at 14,910 yen, a gain of 2.8% but far off its intraday high of 15,410 yen posted at the end of the morning session. The convenience store operator and seven other companies said Thursday that they will set up an e-commerce joint venture in February. Seven-Eleven Japan will have a 51% stake in the joint venture.
Other partners in the venture didn't fare as well. NEC lost 70 yen to 2,230 yen, while Nomura Securities, the parent company of Nomura Research which will take a 13% stake in the venture, lost 19 yen to end at 1,847 yen. Trading company Mitsui & Co., however, rose 7 yen to 749 yen. |
