Jay,...Here's more from Nikkei Net. They seem to be saying the market may or may not go up or go down. Unless it stays the same. Of course, we don't know when <G>.
Tuesday, March 14, 2000
Tech Stock Meltdown Hints At OTC Market Correction
TOKYO (Nikkei)--Technology shares were dumped by investors in Japanese stock markets Monday as selling fed on itself during the session. "Investors were in panic, and the mood of the market was similar to that seen during a selling climax," noted a trader.
The sell-off caused the tech-heavy over-the-counter index to drop 206.74 points to 2,215.88, the biggest one-day decline since the index was first compiled in November 1983.
Market professionals are predicting that speculative funds will not return to the OTC market in the near future, and this could send the market into a major correction.
Top technology shares listed on the Tokyo Stock Exchange, such as Softbank Corp. (9984) and Hikari Tsushin Inc. (9435), failed to escape the heavy selling.
Investors who have bought large-capitalization technology shares on margin suddenly found themselves faced with margin calls, so they sold OTC shares and listed issues alike to raise funds. Traders expect that such selling will continue, anchoring the stock markets in the near future.
"The key to market performance in the near future hinges on how institutional investors, who have heavily bought mutual funds that are designed to invest in technology shares, will react to the decline," predicts Kiyohisa Hirano of Daiwa Institute of Research.
The only consolation regarding Monday's plunge, if any, is that "institutional selling was largely absent," a trader at Ichiyoshi Securities Co. said.
(The Nikkei Financial Daily Tuesday edition)
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Tuesday, March 14, 2000
Stock Outlook: Money To Return To Info Stocks In April
TOKYO (Nikkei)--Information-related equities as a whole have been rising rapidly, so the drop Monday concentrated in that sector, says Yutaka Nakai, head of the investment strategy division at Daiwa Asset Management Co.
He also points to the approach of the March fiscal year-end as another source of the turmoil, but maintains that the stock market decline is only a temporary phenomenon. There has been no change to the scenario where information-related companies take on a leading role in growth, Nakai contends.
Beginning in April, if investors plow their funds back into Softbank Corp. (9984), Sony Corp. (6758) and Hikari Tsushin Inc. (9435) then those issues will rebound, he says.
(The Nikkei Financial Daily Tuesday edition)
Tuesday, March 14, 2000
Stock Outlook: Sony To Touch Bottom Soon
TOKYO (Nikkei)--Sony Corp.'s (6758) share price will hit bottom after one more dip because there is no reason to anticipate any major change in its earnings forecast, asserts Akihiko Sakakibara of Sumitomo Marine Asset Management Co.
However, it will likely take about a month before sentiment improves for Softbank Corp. (9984) and Hikari Tsushin Inc. (9435), he says.
Selling of those issues will mount as investors unwind their positions in information equities, Sakakibara predicts. If that occurs, it will take time for them to recover, he says.
(The Nikkei Financial Daily Tuesday edition)
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Tuesday, March 14, 2000
Stock Outlook: Sony, Softbank Shares To Recover
TOKYO (Nikkei)--Hopes for the share prices of information-related equities were so high that the stock market is now compensating for the overbought levels that individuals and investment trust funds pushed them to, says Norio Suzuki, a senior investment manager at Indocam Japan Ltd.
After a week, there will be a move to pick up Sony Corp. (6758) stock on dips, he says, adding that buying opportunities will soon abound.
Next up after Sony will be shares of Softbank Corp. (9984), which has strategies in finance and other areas, he notes. Suzuki says he would not be surprised to see Softbank stock moving up after about two weeks.
However, Hikari Tsushin Inc. (9435) faces problems about expectations for the development of its business, he says.
(The Nikkei Financial Daily Tuesday edition)
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