Nikkei Retreats; Nikon Plunges 19%, Mazda Soars in Active Trading

Hiruki Nakamura
07 Feb, 2013
New York City

The Nikkei index retreated from a 4-year high and the yen pared back some of the recent weaknesses as investors fear overextended rally may be vulnerable to more yen swings. Sony reported eight quarterly loss and Mazda soared on heavy volume on higher net estimate.

[R]5:00 PM Tokyo – The Nikkei index retreated from a 4-year high and the yen pared back some of the recent weaknesses as investors fear overextended rally may be vulnerable to more yen swings. Sony reported eight quarterly loss and Mazda soared on heavy volume on higher net estimate.[/R]

Stocks in Tokyo traded lower after the yen rebounded and investors feared that the latest market rally may have been overextended.

Trading volume surged to 4.04 billion shares in the most active session in the year so far and only behind the activity on March 15, 2011.

Machinery orders unexpectedly increased 2.8% in December from the previous month, according to the data released by the Cabinet Office.

Nikon, Mazda and Sony were in focus. The weakness in Nikon dragged the precision machinery sector index by 5.5%.

Nikon plunged 19% after it lowered its estimate for full-year to 38 billion yen from its previous estimate of 60 billion yen.

The Nikkei 225 Stock Average declined 106.68 or 0.9% to 11,357.07 and the broader Topix Index added 0.36 to 969.18.

The yen edged lower to 93.65 against one dollar after dropping to as low as 94.08 in yesterday’s session.

Stocks in Review

Japan Airlines Co advanced 140 yen or 3.5% to 4,190 yen. GS Yuasa slid 1 yen to 335 yen, IHI increased 7 yen to 252 yen and Fuji Heavy Industries gained 19 yen to 1,390 yen. All Nippon Airways Co closed unchanged at 184 yen.

Toyota Motor Corp. closed unchanged at 4,815 yen and Honda Motor Co. closed unchanged at 3,580 yen and Nissan Motor Co Ltd fell 3 yen to 993 yen.

Mazda Motor Corp surged 34 yen or 12% to 317 yen after the automaker estimated fiscal year net income of 26 billion yen and operating income by 80% to 45 billion yen.

Mazda stock has gained more than 80% in the year so far and was the most active in trading on the main board.

Nippon Steel slipped 4 yen to 273 yen and JFE Holdings Inc declined 34 yen to 2,182 yen.

Yamaha dropped 16% to 866 yen after it cut its full-year income outlook to breakeven from its previous estimate of 3.5 billion yen profit and lowered its operating income outlook 36% to 7 billion yen.

Shimano Inc closed unchanged at 6,190 yen.

Canon Inc dropped 105 yen to 3,310 yen and Nikon tumbled 500 yen or 18.9% to 2,139 yen. TDK Corp closed unchanged at 3,270 yen.

Nikon plunged 19% after it cut its second half dividend to 12 yen from 22 yen.

The company also guided full-year SLR camera unit sales outlook to 7 million from 7.1 million. The unit sales estimate for lenses was lowered to 9.8 million from 10 million and compact cameras target was held at 17 million.

Nintendo Co. Ltd climbed 100 yen to 8,900 yen and Pioneer Corp. up 1 yen to 249 yen.

Fanuc Corp. jumped 180 yen to 14,790 yen and Komatsu Ltd dropped 37 yen to 2,458 yen. Hitachi Construction Machinery Co slumped 49 yen to 2,181 yen.

Sony gained 2.5% on the expectations of higher earnings after the close. The struggling TV and game console maker reported operating profit compared to a loss in the quarter a year ago but held its operating profit outlook to 130 billion yen or $1.4 billion for the year.

The company narrowed the loss to 10.8 billion yen in the quarter, eight in a row and reiterated estimate for the year profit of 20 billion yen.

The TV maker is cutting costs and eliminating 10,000 jobs and struggling to increase operating margin in its TV business that is expected to declare annual loss for the ninth year.

Softbank Corp slipped 50 yen to 3,465 yen.

FamilyMart Co Ltd, the convenience chain operator advanced 35 yen to 3,780 yen and Lawson lowered 10 yen to 6,930 yen. Ito En Ltd fell 9 yen to 1,788 yen.

Seven & I Holdings Co slid 2 yen to 2,817 yen. Fast Retailing Co. declined 490 yen to 24,710 yen and J. Front Retailing Co. Ltd slipped 5 yen to 522 yen.

Mitsubishi UFJ Financial Group up 5 yen to 538 yen and Sumitomo Mitsui Financial Group slumped 40 yen to 3,790 yen. Dai-Ichi Life decreased 1.6% to 133,400 yen. Nomura Holdings, Inc advanced 14 yen to 531 yen.

Takeda Pharmaceutical Co lowered 15 yen to 4,700.

Mitsui O.S.K. Lines, Ltd added 5 yen to 329 yen and Nippon Yusen K.K. fell 1 yen to 226 yen.