Nikkei in Downward Draft, J. Front Estimates Higher Sales

Hiruki Nakamura
25 Jun, 2015
New York City

Nikkei average in Tokyo closed down and the yen weakened after Greek debt collapsed and U.S. revised its first-quarter economic growth. J. Front Retailing reported first-quarter sales declined 0.1% but estimated sales to rise 2.4% in the first-half.

[R]4:30 PM Tokyo – Nikkei average in Tokyo closed down and the yen weakened after Greek debt collapsed and U.S. revised its first-quarter economic growth. J. Front Retailing reported first-quarter sales declined 0.1% but estimated sales to rise 2.4% in the first-half.[/R]

Market indexes in Tokyo and in Asia declined after Greek debt talks collapsed and investors also digested economic growth data in the U.S.

After the first revision, the U.S. economy shrank at a smaller rate than previously estimated a month ago in May as the largest economy struggled with the rising dollar and growing trade deficit and strike at West Coast ports.

The Nikkei 225 Stock Average slipped 96.63 or 0.5% to 20,771.40 and the broader Topix index slid 8.98 to 1,670.91.

The yen closed at 123.75 against a dollar.

Stocks in Review

Hikari Tsushin, Inc slipped 0.9% to 8,420 yen after the electronic device retailer agreed to acquire information technology provider iFlag Co Ltd in a deal that will exchange one share of the company for 0.012 share of Hikari.

iFlag Co Ltd stock surged 44.8% to 97 yen.

J.Front Retailing Co Ltd slid 0.2% to 2,357 yen after the department store operator reported net sales in the first-quarter ending in May edged down 0.1% to 285.6 billion yen from 285.3 billion yen in a year ago period.

Net income in the quarter surged 243.9% to 17.08 billion yen compared to 4.97 billion yen and diluted earnings per share jumped 64.88 yen from 18.82 yen in the same period a year ago.

The retailer forecasted net sales in the first-half ending in August to increase 2.4% to 571 billion yen and net income to soar 111.5% to 16.50 billion yen.

For the fiscal 2016, the company forecasted net sales to rise 2.4% to 1.18 trillion yen and net income to surge 40.2% to 28 billion yen.

Nissan Chemical Industries, Ltd decreased 1.3% to 2,774 yen after the basic chemicals manufacturer announced 2.50 million share buyback program worth up to 6 billion yen between May 13 and August 31.

Pola Orbis Holdings Ltd rose 0.4% to 6,990 yen after the Nikkei daily said the cosmetics and nightwear product maker’s sales for the first-half to increase 4% to 100 billion yen and operating profit to rise 8% to 9 billion yen.

For the fiscal year, sales are expected to jump 5% to 207.5 billion yen and operating profit to soar 13% to 20 billion yen.