Nikkei Extends Gains; Inpex, Inpex Rises, Heiwa Real Estate Falls

Nigel Thomas
18 Feb, 2011
New York City

Stocks in Japan took a breather after rising for a week. In the year the benchmark index is up 6% as foreign investors seek bargains. Shipping and energy companies gained for the second week in a row as unrest in the Middle East spread to oil producing nations.

[R]5:00 PM Tokyo – Stocks in Japan took a breather after rising for a week. In the year the benchmark index is up 6% as foreign investors seek bargains. Shipping and energy companies gained for the second week in a row as unrest in the Middle East spread to oil producing nations.[/R]

Stocks in Japan closed nearly flat after rallying 6% in the year. Investors have been pouring money into stocks in Japan and developed markets on the rebound in earnings and prospect of global economic recovery.

Rising tensions in the Middle East have not affected trading sentiment in Asia.

Nikkei 225 Stock Average increased 0.1% or 6.16 to 10,842.80 and for the week added 2.2%. The broader index Topix decreased 0.1% to 973.60 and gained 2.9% in the week.

Trading volume exceeded 2 billion shared for a tenth day and average volume in the week was 2.26 billion shares from 2.16 billion in the previous week.

A two-day meeting of G-20 finance ministers and central bankers begins in Paris today.

Stock Movers

Circle K Sunkus increased 3.9% to 1,411 yen after it lifted its annual operating earnings outlook by 14% on rising lunch box prices and price increase for cigarettes.

JVC Kenwood rose 6% to 438 yen after company chief executive told Reuters that at the end of financial year in March the company will be able to lift warning for “a going concern” and has asked its parent shareholder Panasonic Corp to not sell its stake.

Inpex Corp, Japan’s largest oil and gas developer increased 1.4% to 587,000 yen as international oil price continue to trade near $100 a barrel. Middle East unrest has now touched Libya and Iran and Saudi Arabia arrested activist for planning demonstrations.

Heiwa Real Estate Co dropped 5.7% to 249 yen after the company announced plans to sell shares to raise 13.4 billion yen that will increase Mitsubishi Estate stake in the company to 10%.

Nippon Steel Corp declined 1% to 305 yen after Chinese steelmakers passed on price increase between 200 yuan and 600 yuan a ton to customers.

Shipping companies gained for the second week in a row as freight rate index in London traded higher.

Tokio Marine Holdings Inc fell 2% and Toyota Motor Corp decreased 0.6%.