Nikkei in Tokyo Sruggles, Fanuc Plunges 10%

Hiruki Nakamura
29 Jul, 2015
New York City

Nikkei average in Tokyo closed down in lacklustre trading and investors focused on domestic earnings. NTT DoCoMo estimated higher annual revenues. Fanuc plunged the most in seven years after lowering annual outlook. Dentus wins Olympic rights in Asia for 2018-2024.

[R]4:30 PM Tokyo – Nikkei average in Tokyo closed down in lacklustre trading and investors focused on domestic earnings. NTT DoCoMo estimated higher annual revenues. Fanuc plunged the most in seven years after lowering annual outlook. Dentus wins Olympic rights in Asia for 2018-2024.[/R]

In lacklustre but volatile trading, Nikkei average in Tokyo closed down as commodities traded lower and volatility in Chinese markets ebbed for now.

On the economic front, retail sales in June increased 0.9% to 11.46 trillion yen from 3% climb in May, the Ministry of Economy, Trade and Industry said.

Sales from large retailers slipped 0.3% to 1.64 trillion yen compared to after surging of 5.3% in last month.

The ministry added Wholesale sales added 0.9% to 26.98 trillion yen and commercial sales jumped 0.9% to 38.44 trillion yen.

The Nikkei 225 Stock Average slid 25.98 to 20,302.91 and the broader Topix index rose 4.48 to 1,633.94.

The yen closed at 123.63 against a dollar.

Stocks in Review

Dentsu Inc gained 1.5% to 6,890 yen after the International Olympic Committee today announced that Dentsu awarded the exclusive broadcast rights in 22 countries in Asia for the Olympic Winter Games 2018 and the games in Tokyo in 2020 as well as the Olympic Games in 2022 and 2024.

Dentsu is also the Olympic broadcast partner in the region for the Olympic Games held in Rio in 2016.

Fanuc Corporation plunged 10.7% to 20,700 yen after the numeric control systems maker reported net sales in the first-quarter ending in June soared 20.9% to 197.42 billion yen from 163.32 billion yen in a year ago period.

Net income in the quarter surged 12.3% to 50.77 billion yen compared to 45.19 billion yen and earnings per share jumped to 259.48 yen from 230.96 yen the same period a year ago.

Fanuc forecasted revenues for the first-half ending in September to increase 1.8% to 348.90 billion yen but net income to drop 4.2% to 90.40 billion yen.

For the year, the company forecasted net sales to decline 13.9% to 628.30 billion yen and net income to plunge 23.2% to 159.50 billion yen.

Hitachi, Ltd slipped 1.3% to 736.60 yen after the diversified technology company stated revenues in the first-quarter ending in June jumped 7% to 2.31 trillion yen from 2.16 trillion yen in a year ago period.

Net income in the quarter soared 131% to 54.9 billion yen compared to 41.8 billion yen and diluted earnings per share climbed to 11.36 yen from 8.66 yen the same period a year ago.

NTT Docomo Inc jumped 2.8% to 2,533.50 yen after the mobile and broadband service provider said revenues in the first-quarter ending in June edged up 0.1% to 1.08 trillion yen from 1.07 trillion yen in a year ago period.

Net income in the quarter jumped 23.8% to 168.78 billion yen compared to 136.38 billion yen and earnings per share climbed to 43.48 yen from 32.89 yen the same period a year ago.

For the year, the Docomo forecasted revenues to jump 2.9% to 4.51 trillion yen and net income to climb 14.6% to 470 billion yen.

Nippon Steel & Sumitomo Metal Corp slipped 0.6% to 276.30 after the steel products maker reported net sales in the first-quarter ending in June declined 7.1% to 1.26 trillion yen from 1.36 trillion yen in a year ago period.

Net income in the quarter soared 50.5% to 72.73 billion yen compared to 48.34 billion yen and earnings per share increased to 7.97 yen from 5.30 yen the same period a year ago.

For the first-half, the steel bars and pipes maker said estimated revenues to slump 10% to 2.50 trillion yen but net income to gain 2.5% to 115 billion yen.

Nippon Steel forecasted net sales for the year to drop 9.1% to 5.10 trillion yen and net income to climb 21.3% to 260 billion yen.

Nomura Holdings, Inc fell 0.5% to 860.40 yen after the investment advisor said total revenues in the first-quarter ending in June jumped 10% to 508.45 billion yen from 462.15 billion yen in a year ago period.

Net income in the quarter climbed 246.1% to 68.74 billion yen compared to 19.86 billion yen and diluted earnings per share soared to 18.65 yen from 5.26 yen the same period a year ago.

Panasonic Corporation increased 0.8% to 1,536.50 yen after the diversified conglomerate reported net sales in the first-quarter ending in June nearly flat at 1.86 trillion yen from 1.85 trillion yen in a year ago period.

Net income in the quarter climbed 157% to 59.5 billion yen compared to 37.9 billion yen and diluted earnings per share jumped to 25.75 yen from 16.41 yen the same period a year ago.

Panasonic said forecast for the business performance in the fiscal 2016 remains unchanged from the previous forecast announced on April 28.