Nikkei in Cautious Advance; ANA, Canon, Daiwa and Nomura in Focus

Hiruki Nakamura
28 Oct, 2015
New York City

Nikkei average in Tokyo closed higher and investors focused on the latest earnings announcement. Canon continued to struggle in its camera division. ANA first-half net soared 51%. Daiwa and Nomura reported better-than-expected earnings.

[R]4:30 PM Tokyo – Nikkei average in Tokyo closed higher and investors focused on the latest earnings announcement. Canon continued to struggle in its camera division. ANA first-half net soared 51%. Daiwa and Nomura reported better-than-expected earnings.[/R]

Market averages in Tokyo gained and investors shifted attention to local earnings after ANA, Daiwa, Canon, Nomura and East Japan Railway reported earnings.

On the economy front, the retail sales in September dropped 0.2% followed by 0.8% increase in August, the Ministry of Economy, Trade and Industry said.

On a seasonally adjusted basis, retail sales in September jumped 0.7% from the previous month.

The Nikkei 225 Stock Average gained 125.98 or 0.7% to 18,903.02 and the broader Topix index added 4.08 to 1,547.19.

The yen strengthened to 120.43 against a dollar.

Stocks in Review

ANA Holdings Inc increased 1.7% to 366.30 yen after the airline reported said net sales in the first-half ending in September soared 6.6% from a year ago to 911.22 billion yen.

Net income in the period advanced 50.9% to 53.97 billion yen compared to 35.77 billion yen and diluted earnings per share rose to 15.44 yen from 10.25 yen.

ANA estimated net sales for the year to jump 3.1% to 1.79 trillion yen and net income to increase 32.5% to 52 billion yen.

Canon Inc declined 3.2% to 3,610 yen after the printers and camera maker said net sales in the third-quarter ending in September jumped 6.1% from a year ago to 925.78 billion yen.

Net income in the period plummeted 15.6% to 49.18 billion yen compared to 58.25 billion yen and diluted earnings per share slumped to 45.03 yen from 52.67 yen.

The company lowered its net sales forecast for the year to drop 2.8% to 3.82 trillion yen from 3.93 trillion yen and net income to decrease 8.2% to 225 billion yen.

Daiwa Securities Group Inc gained 0.9% to 863.50 yen after the investment and financial services provider reported net sales in the first-half ending in September jumped 14.8% from a year ago to 349.52 billion yen.

Net income in the period soared 17.4% to 98.57 billion yen compared to 83.94 billion yen and diluted earnings per share rose to 40.03 yen from 41.57 yen.

East Japan Railway Company fell 0.2% to 11,340 yen after the railway services provider stated net sales in the third-quarter ending in September rose 4.8% from a year ago to 1.42 trillion yen.

Net income in the period surged 23% to 167.36 billion yen compared to 136.02 billion yen and earnings per share slipped to 426.82 yen from 345.86 yen.

The company forecasted net sales for the year to increase 3.1% to 2.84 trillion yen and net income to soar 40.2% to 253 billion yen.

Fujifilm Holdings Corp jumped 1.1% to 4,772 yen after the films, digital cameras, optical devices maker reported net sales in the first-half ending in September jump 3.6% from a year ago to 1.23 trillion yen.

Net income in the period soared 15.8% to 46.95 billion yen compared to 40.55 billion yen and diluted earnings per share increased to 98.52 yen from 83.89 yen.

The company forecasted net sales for the year to advance 3.5% to 2.58 trillion yen and net income to edge up 1.2% to 120 billion yen.

Nomura Holdings, Inc increased 1.1% to 787 yen after the financial services provider said net sales in the first-half ending in September fell 2.2% from a year ago to 912.97 billion yen.

Net income in the period plunged 30.1% to 72.73 billion yen compared to 115.30 billion yen and diluted earnings per share dropped to 19.34 yen from 31.26 yen.

The company forecasted net sales for the year to increase 1.5% to 860 billion yen but net income to plummet 13.9% to 53.50 billion yen.