Topix in Tokyo Extends 2-week Gains, Chugai Pharma Drops 9%

Hiruki Nakamura
25 Aug, 2014
New York City

Market indexes in Tokyo extended two-week gains and the Topix index is close to erasing its loss in the year-so-far. Chugai Pharma dropped 9% after Roche decided not to bid for the remaining 40% stake. Press Kogyo reported better than expected sales.

[R]4:30 PM Tokyo – Market indexes in Tokyo extended two-week gains and the Topix index is close to erasing its loss in the year-so-far. Chugai Pharma dropped 9% after Roche decided not to bid for the remaining 40% stake. Press Kogyo reported better than expected sales.[/R]

Stocks in Tokyo extended two-week gains and investors looked at the yen trading and local company earnings.

Central bankers debated the health of the world economies and macro flows and weighed the outlook for additional stimulus and interest rates at the conclusion of the annual meeting organized by the U.S. Federal Reserve.

The Topix added 0.4% and the Nikkei gained 0.5% and the yen declined 0.3%.

The broader indexes is only 1% away from breaking even in the year so far and the index is trading at 1.2 times the book value. Trading volume in the index was 20% below its one-month average.

Fujifilm Holdings Corp advanced 4% after Chief Cabinet Secretary Yoshihide Suga told reporters that the government was ready to release unapproved Ebola drug if the World Health Organization requests.

Chugai Pharmaceutical Co plunged 9% to 3,325 yen after local reports suggested that the Switzerland based Roche Holding AG has decided against bidding for the 40% of the drugmaker it does not control.

The Nikkei 225 Stock Average jumped 74.06 or 0.5% to 15,613.25 and the broader Topix index rose 5.24 to 1,291.31.

The yen closed at 104.18 against one U.S. dollar and dropped more than 1% in the week

Stocks in Review

Chugai Pharmaceutical Co Ltd plunged 9.1% to 3,325 yen on report that the Switzerland-based pharmaceuticals Roche Holding AG agreed to acquire the U.S.-based biotech company InterMune Inc for $8.3 billion in cash and will pay $74 per share through tender offer which represents a premium of 38%.

Roche decided not to bid for the remaining stake in the Japanese drug-maker.

Under the terms, Roche will tender to acquire all outstanding shares of InterMune by end of this month.

KDDI Corp increased 0.9% to 6,150 yen after the mobile communication service provider completed its purchase of 90% in Natasha Inc., the operator of the Natalie pop culture news site.

PRESS KOGYO CO., LTD gained 1.2% to 407 yen after the automotive parts and construction machinery maker net sales in the first-quarter ending in June jumped 6.9% to 46.36 billion yen from 43.36 billion yen a year ago period.

Net income plunged 23.2% to 1.34 billion yen compared to 1.75 billion yen and earnings per share declined to 12.37 yen from 16.11 yen a year earlier.