Daiwa Securities Profit Declines, Nikkei Down

123jump.com Staff
04 Apr, 2008
New York City

Japan stocks fell on Friday but for the week rose on global markets recovery. Financial stocks are still under the pressure and banks and securities companies are focus of intense speculation. Daiwa Securities annual profit fell 51% and reported a loss in the fourth quarter.

[R]5:00AM New York, 7:00PM Tokyo – Stocks in Japan gained for the week but financial sector stocks remain a subject of intense speculation.[/R]

In Tokyo trading Nikkei 225 declined 0.72% or 96.68 to 13,293.22, rising 3.7% for the week while the broader Topix Index fell 0.8% or 10.70 to 1,288.94, increasing 3.6% in the week.

Stocks in Japan rose on Friday trading dragged by news that Tokyo Steel Manufacturing Co had stopped exports as a result of a rising yen and high scrap prices.

In the first section of the Tokyo Stock Exchange 18 billion shares worth 2.1 trillion yen were traded and in the second section 5.2 billion yen changed hands.

Of the Nikkei 225 stocks 77 gained, 138 declined and 10 were unchanged. Fuji Electric House led decliners in the Nikkei 225 index shares with a drop of 9.67% followed by Pioneer Corp falling 8.92%.

Tokyo Steel Manufacturing

Bloomberg news reported today that Tokyo Manufacturing Co spokesman Nobuaki Nara said the company recently halted exports owing to “high scrap prices and a rising yen”. Nara added that the company will reduce production further if orders continue to decline.

BOJ may have a new governor soon

The Nikkei news reported today that the opposition Democratic Party of Japan was willing to accept the promotion of Masaaki Shirakawa as the new Bank of Japan Governor after serving as the interim chief since Toshihiko Fukui’s term expired on March 19.

Shirakawa, who has served the bank for 34 years, was previously nominated as the deputy governor but is being regarded by the opposition and most capable of handling issues at the central bank.

The opposition party vetoed the nomination of Toshiro Muto and Koji Tonami because of their connections with the finance ministry.

In addition, Hiroshi Watanabe is being proposed to fill the position that will be left by Shirakawa as deputy governor.

Director of the Upper House Committee on Rules and Administration said a six-person parliamentary committee will meet on April 7 to receive the government''s nomination.

Gainers & Losers

Konami Corp. led advancers in the Nikkei 225 index shares with a rise of 4.84% followed by increases in Kikkoman Corp. of 4.45%, in Marubeni Corp. of 4.02%, in Mitsubishi Paper of 3.57%, and Dentsu Inc of 3.31%.

Commodity stocks also rose after metal prices rose. Gold futures advanced to $909.60 yesterday. Mitsubishi Corp gained 3.17% and Mitsui & Co. advanced 0.47%.

Fuji Electric House led decliners in the Nikkei 225 index shares with a drop of 9.67% followed by losses in Pioneer Corp of 8.92%, in Mitsui Sumitomo of 7.98%, in Sumco Corp. of 7.98%, and Clarion Co. Ltd. of 7.49%.

Automakers declined as well. Mazda Motor Co. of 4.20%, Nissan Motor Corp. shed 4.83% and Honda edged up 5.19%.

Daiwa profit falls 51%

Daiwa Securities reported today its preliminary earnings fell 51% to 45 billion yen from 92.7 billion yen a year earlier in the year ended March 31 and in the fourth quarter lost 14.3 billion yen.