Narrow Trading in Tokyo; Auto Parts Makers Drop, Tepco Plunges 16%

Nigel Thomas
24 Mar, 2011
New York City

Tokyo stocks traded in a narrow range and investors focused on the efforts at restoring power at the troubled nuclear power plant. Tokyo Electric plunged 16% after it halted its second half dividend. Automaker declined on the worries that parts shortage may persist more than a month.

[R]5:20 PM Tokyo – Tokyo stocks traded in a narrow range and investors focused on the efforts at restoring power at the troubled nuclear power plant. Tokyo Electric plunged 16% after it halted its second half dividend. Automaker declined on the worries that parts shortage may persist more than a month.[/R]

Stocks in Japan inched higher on the optimism that the progress at the troubled nuclear power plant will avert the power crisis however market indexes slid in the late trading.

Tokyo Electric Power declined after it suspended its second half dividend and auto maker fell on difficulty in sourcing parts.

The Nikkei 225 Stock Average declined 0.2% to 9.435.01 and the broader Topix index dropped 0.8% to 853.95.

Stock Movers

Tokyo Electric dropped 14% to 902 yen after the utility operator suspended second half dividend of 30 yen. The most heavily traded stock decline also affected the broader market.

Chuba Electric Power Co declined 1.7% to 1,976 and the company delayed its construction plan by a year for a new reactor.

Tohoku Electric Power Co dropped 5% to 1,514 yen as the company struggles to restore full power in Miyagi and Fukushima prefectures.

Automakers declined on the worries that parts shortage may persist longer than earlier expected. Nissan chief executive Carols Ghosn also said that automakers are facing shortage of plastics and rubber and electrical subassemblies and electronic components.

Nissan Motor declined 4.6% to 671 yen and Toyota Motor Corp declined 2.7% to 3,215 yen. Honda Motor Co. fell 2.6% to 3,010 yen.

Jtekt Corp declined 1.5% to 961 yen and NTN Corp dropped 1.3% to 377 yen. Minebea Co Ltd increased 1.9% to 436 yen.

Energy refiners and explorers rose after crude oil price in New York jumped above $105 a barrel. Inpex Corp soared 6% to 636,000 yen and Japan Petroleum Exploration Co added 1.8% to 4,035 yen.

Construction companies gained for the second week in a row. Taiheiyo Cement Corp increased 5.2% to 161 yen and Furukawa Co. added 7.5% to 86 yen.

Kajima Corp increased 0.8% to 254 yen.

Beverages maker rose for the second day after Tokyo authorities warned infants to not drink tap water.

Coca-Cola West increased more than 3% and Asahi Breweries Ltd declined 3.5% to 1,425 yen and Kirin Holdings Company, Ltd declined 2.7% to 1,073 yen.

Nihon Trim Co. Ltd increased its daily limit of 400 yen or 21% to 2,300 yen.