Third Weekly Gain in Japanese Stocks, Dentsu, Mitsui in Focus

Hiruki Nakamura
06 Jun, 2014
New York City

Stocks in Tokyo advanced for the eleventh day in a row and the yen held above 102 level following additional monetary measures in the euro zone. Dentsu reported a sharp jump in revenues in May. Mitsui & Company plans to build a 2,000 mw coal-fired power plant in Malaysia.

[R]4:30 PM Tokyo – Stocks in Tokyo advanced for the eleventh day in a row and the yen held above 102 level following additional monetary measures in the euro zone. Dentsu reported a sharp jump in revenues in May. Mitsui & Company plans to build a 2,000 mw coal-fired power plant in Malaysia.[/R]

Stocks in Tokyo continued the advance the Topix index extended 11-day rally led by exporters and resource stocks.

The Nikkei 225 Stock Average inched lower 2.13 to 15,077.24 and the broader Topix index edged up 1.82 to 1,234.57. For the week, Nikkei 225 jumped 3%.

The yen closed at 102.31 against one U.S. dollar.

Stocks in Review

Dentsu Inc fell 0.4% to 4,170 yen after the advertising and communication services provider said net sales in May surged 103.3% to 114.37 billion yen from a year ago month.

The company added sales from television segment soared 107.1% to 61.43 billion yen and revenues from marketing and promotion segment jumped 91.3% to 11.40 billion yen from a year earlier.

Dydo Drinco,Inc gained 0.8% to 4,315 yen after the beverages maker reported net sales in the first-quarter ending in April were nearly flat at 35.40 billion yen from a year ago period.

Net income in the quarter plunged 94% to 4 million yen compared to 78 million yen a year earlier.

Mitsui & Co Ltd slid 0.3% to 1,559 yen after the diversified trading company will build and operate a $3.3 billion coal-fired power plant in Malaysia in partnership with a local state-owned company.

Construction will start this year for the power plant with annual capacity of 2,000 megawatts.

Lifenet Insurance Company increased 1.6% to 442 yen after the insurance company said insurance premiums surged 114% to 672 million yen and claims and benefits climbed 59% to 69 million yen from a year ago.

The total number of policies at the end of May increased to 205,064 and annualized premium jumped to 8.17 billion yen and total insured interest rose to 17.20 billion yen.

Samco Inc slipped 1.1% to 1,182 yen after the electronic parts maker said net sales in the year ending in April declined 13.4% to 2.75 billion yen from 3.18 billion yen a year ago.

Net income in the year tumbled 81.9% to 60 million yen compared to 335 million yen and diluted earnings per share declined to 8.60 yen from 47.62 yen a year earlier.

Sumco Corp surged 11% to 914 yen after the high-purity silicon wafers maker is operating near its full capacity, the Nikkei newspaper reported.

Prices of silicon wafers sold in bulk remain unchanged from the previous quarter and some manufacturers may raise prices in the current quarter.

Sapporo Holdings Ltd rose 0.9% to 430 yen after the alcohol manufacturer said it will stop selling Goku Zero as a third-segment beer after receiving notice from tax authorities that the product may not fit into the category.

Sapporo has to pay up to 11.6 billion yen or $113 million in additional alcohol tax to the National Tax Agency, company officials said.

The company plans to relaunch the product on July 15 as a Happoshu low-malt quasi-beer and priced between 20 yen and 30 yen higher to 350 milliliter can.