Nikkei Jumps 9% in October, Daiichi and Takeda Revised Annual Sales Outlook

Hiruki Nakamura
30 Oct, 2015
New York City

Nikkei average extended weekly gain on Friday to 1.4% and jumped nearly 9% in the month. Daiichi Sankyo and Takeda Pharmaceutical estimated higher annual sales but quarterly earnings quality were lower-than-expected. NTT DoCoMo first-half sales rose only 1.9%.

[R]4:30 PM Tokyo – Nikkei average extended weekly gain on Friday to 1.4% and jumped nearly 9% in the month. Daiichi Sankyo and Takeda Pharmaceutical estimated higher annual sales but quarterly earnings quality were lower-than-expected. NTT DoCoMo first-half sales rose only 1.9%.[/R]

Nikkei average in Tokyo closed higher and extended weekly gain to 1.4% and more the month to nearly 9%.

The housing starts in September declined more-than-expected to 2.2% from the surge of 8.8% in August, the Ministry of Land, Infrastructure, Transport and Tourism said.

The number of housing starts in September fell to 900,000 from 931,000 in August.

The consumer price index in September was unchanged from 0.2% in August and overall inflation edged up 0.1% while core inflation was flat, the Ministry of Internal Affairs and Communications said.

Separately, the department reported the seasonally adjusted unemployment rate in September was steady at 3.4% from the last month.

The number of unemployed persons decline by 2.6% to 2.27 million from August and employed persons in September rose 0.6% to 64.39 million.

The Nikkei 225 Stock Average rose 147.39 or 0.8% to 18,083.10 and the broader Topix index gained 11.09 to 1,558.20.

For the week, Nikkei 225 increased 1.4% and for the month soared 9.8% and from a year ago surged 24.8%.

The yen strengthened to 120.86 against a dollar.

Stocks in Review

Daiichi Sankyo Company, Limited jumped 2.2% to 2,384.50 yen after the pharmaceuticals company reported net sales in the first-half ending in September soared 11.4% from a year ago to 478.78 billion yen.

Net income in the period surged 40.5% to 70.70 billion yen compared to 50.33 billion yen and diluted earnings per share jumped to 101.47 yen from 71.34 yen.

The pharmaceutical products maker estimated net sales for the year to increase 6.6% to 980 billion yen and net income to plunge 76.7% to 75 billion yen.

Hitachi, Ltd gained 0.7% to 702.90 yen after the diversified company reported net sales in the first-half ending in September jumped 5.7% from a year ago to 4.81 trillion yen.

Net income in the period declined 6.2% to 165.8 billion yen compared to 176.8 billion yen and diluted earnings per share dropped to 20.21 yen from 24.36 yen.

Hitachi forecasted 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.

Japan Exchange Group Inc rose 1.6% to 1,964 yen after the trading exchange operator stated net sales in the first-half ending in September soared 16.3% from a year ago to 57.95 billion yen.

Net income in the period surged 46.6% to 23.89 billion yen compared to 16.29 billion yen and earnings per share rose to 43.49 yen from 29.67 yen.

The exchange operator forecasted net sales for the year to increase 1.7% to 108 billion yen and net income to soar 11.8% to 38.50 billion yen.

NTT DoCoMo Inc increased 1.2% to 2,357.50 yen after the mobile and broadband services provider reported net sales in the first-half ending in September rose 1.9% from a year ago to 2.21 trillion yen.

Net income in the period surged 22.2% to 317.14 billion yen compared to 259.52 billion yen and earnings per share jumped to 81.70 yen from 62.61 yen.

The broadband services provider forecasted net sales for the year to advance 2.4% to 4.49 trillion yen and net income to soar 19.5% to 490 billion yen.

Showa Denko K.K slipped 0.6% to 153 yen after the petrochemical company said net sales in the nine-month ending in September declined 8.1% from a year ago to 594.1 billion yen.

Net income in the period doubled to 4.2 billion yen compared to 2.2 billion yen and diluted earnings per share dropped to 20.21 yen from 24.36 yen.

The company estimated net sales for the year to jump about 825 billion yen and net income to increase approx 10 billion yen.

Takeda Pharmaceutical Co Ltd gained 1.4% to 5,930 yen after the pharmaceutical company reported net sales in the first-half ending in September soared 6.2% from a year ago to 904.05 billion yen.

Net income in the period tumbled 11.3% to 55.99 billion yen compared to 63.15 billion yen and diluted earnings per share slipped to 68.68 yen from 77.95 yen.

The healthcare products maker estimated net sales for the year to jump 2.4% to 1.82 trillion yen and net income of about to 68 billion yen.

Yamaha Corp jumped 2.7% to 3,025 yen after the musical instruments maker stated net sales in the first-half ending in September jumped 5.4% from a year ago to 217.45 billion yen.

Net income in the period soared 61.4% to 17.41 billion yen compared to 10.79billion yen and earnings per share increased to 89.92 yen from 55.73 yen.

Yamaha forecasted net sales for the year to increase 1.1% to 437 billion yen and net income to soar 16.3% to 29 billion yen.