Tepco May Face Nationalization; Takashimaya, Tsudakoma in Focus

Nigel Thomas
27 Dec, 2011
New York City

Stocks in Japan edged lower and the trading sentiment remained weak. Market volume was the lowest in the year and the weakest at least in seven years as international markets grind to a halt. Tepco may have to give up control of the company to receive government aid. Takashimaya lowers annual view.

[R]7:00 PM Tokyo – Stocks in Japan edged lower and the trading sentiment remained weak. Market volume was the lowest in the year and the weakest at least in seven years as international markets grind to a halt. Tepco may have to give up control of the company to receive government aid.[/R]

Stocks in Japan edged lower as markets in North America and Western Europe were closed on Monday. Tokyo Electric was in focus after the government requested the electric utility operator to temporarily give up control of the company.

The Nikkei 225 Stock Average fell 0.5% to 8,440.56 and the broader Topix index decreased 0.3% to 724.25.

For the year the Nikkei is down 17.5% and the Topix index fell 20% and the market indexes in Germany has fallen 15% and in France declined 18%. The S&P 500 index is up 0.6%.

Stock Movers

The Tokyo Electric Power decreased 2 yen to 211 yen after the company requested 689 billion yen in government aid to help pay for the victims of the nuclear accident. Japanese Trade Minister Yukio Edano urged executives at the company to permit temporary nationalization as one of the options.

Tepco may have to pay as much as 4.5 trillion yen in compensation by 2013.

Toyota Motor fell 6 yen to 2,506 yen and Honda Motor Co. closed down 14 yen to 2,340 yen and Nissan Motor Co Ltd decreased 12 yen to 684 yen.

Sony Corp increased 7 yen to 1,387 yen, Panasonic Corp fell 4 yen at 641 yen and Canon Inc closed up 10 yen to 3,470 yen.

Nintendo Co. Ltd increased 130 yen to 10,730 yen and Nexon Co Ltd declined 19 yen to 1,156 yen.

Olympus Corp decreased 21 yen to 1,005 yen after the company amended its earning that were filed on December 14 and Nomura Holdings, Inc rose 1 yen to 239 yen.

Fanuc Ltd closed down 100 yen to 11,680 yen and Kyocera fell 40 yen at 6,210 yen. Nikon Corp decreased 6 yen to 1,715 yen.

Tsudakoma Corp increased 14.3% to 176 yen after the textile machinery maker said net income in the year ending on November 30 increased to 850 million yen ahead of the company expectations.

Elpida Memory Inc rose 8 yen to 379 yen and Ulvac, Inc fell 21 yen to 934 yen.

Mitsui O.S.K. Lines, Ltd decreased 3 yen to 292 yen, Kawasaki Kisen Kaisha, Ltd closed down 1 yen to 140 yen and Nippon Yusen K.K. decreased 4 yen to 196 yen.

Daiichi Sankyo Ltd decreased 10 yen to 1,508 yen and Astellas Pharma Inc closed down 30 yen at 3,070 yen.

Fast Retailing Co. increased 160 yen to 13,760 yen and Takashimaya Company, Ltd declined 21 yen or 3.6% to 560 yen after the retailer lowered its annual net earnings outlook on higher taxes.

Ms&Ad Insurance Group Holdings, Inc closed up 8 yen to 1,428 yen and NKSJ Holdings Inc rose 18 yen to 1,498 yen.

Mitsubishi UFJ Financial Group closed unchanged at 326 yen and Sumitomo Mitsui Financial Group decreased 14 yen to 2,157 yen.

Komatsu Ltd decreased 15 yen to 1,816 yen and Hitachi Construction Machinery Co decreased 11 yen to 1,287 yen.

Obayashi Corp increased 6 yen to 338 yen on a media report that the government is set to resume work on three bullet train lines.

On the news, Matsui Construction Co increased 3% to 307 yen and Yahagi Construction decreased 0.5% to 385 yen. Kajima Corp increased 5 yen to 233 yen and Shimizu Corp added 4 yen to 317 yen.

Softbank Corp closed down 41 yen at 2,295 yen, KDDI closed unchanged at 500,000 yen and NTT DoCoMo, Inc added 0.7% to 139,000 yen.