Konica, Orix Outlook Lifts Tokyo Stocks

123jump.com Staff
12 May, 2008
New York City

Stocks in Japan rose on strong earnings forecasts from Konica Minolta and Orix Corp. A weaker yen also helped exporters. Electric utility companies fell for the second week in a row on record crude oil prices. In Tokyo trading Nikkei 225 rose 0.6% or 88.02 to 13,743.36, and the broader Topix Index increased 0.08% or 1.03 at 1,342.79.

[R]5:00AM New York, 7:00PM Tokyo – Earnings outlook from Orix Corp and Konica Minolta lift stocks in Tokyo.[/R]

Stocks in Japan rose on strong earnings forecasts from Konica Minolta and Orix Corp. A weaker yen also helped exporters. Electric utility companies fell for the second week in a row on record crude oil prices.

In Tokyo trading Nikkei 225 rose 0.64% or 88.02 to 13,743.36, and the broader Topix Index increased 0.08% or 1.03 at 1,342.79.

In the first section of the Tokyo Stock Exchange 7.3 billion shares worth 909 billion yen was traded and in the second section 221 million shares valued at 5.1 billion yen changed hands.

Of the Nikkei 225 stocks 121 advanced, 96 declined, and 8 were unchanged. Konica Minolta led gainers in the index shares with a rise of 12.14% after forecasting net income will increase by 1.7% to 70 billion yen in the fiscal year ending March 2009.

Konica estimates profit increase of 1.7%

Konica Minolta reported in its results for the fiscal year ending March 31st that net income is projected to gain 1.7% to 70 billion yen in the year ending March 2009 and net sales are expected to rise 3.6% to 1.1 trillion yen. Operating income is forecasted to increase by 0.3% to 120 billion yen.

The company is hoping to benefit from the Beijing Olympics to be held in August to increase sales for consumer electronic goods such as recorders and LCD TVs.

Mizuho Securities Co. raised its rating on the Tokyo based company to ``buy'''' from ``hold'''' following the earnings forecast.

Orix profit to rise 3.2%

Financial institution Orix Corp. estimated fiscal 2009 profits to gain 3.2% to 175 billion yen on a 10% increase in annual revenue to 1.2 trillion yen. Net income in the fiscal 2008 fell 13.7%.

Shirakawa says virtuous circle weakening

Bloomberg News reported that the Bank of Japan Governor Masaaki Shirakawa said today at a speech at the Japan National Press Club that slow economic growth will continue for some time but will eventually pick up.

Shirakawa added that the “uncertainty about the economic outlook is very high”, and the bank will be focusing on the risk posed by the global economic slowdown and turmoil in the financial markets.

The report noted that the central bank chief said the interest rates, which are currently near zero, need to be adjusted in order to prevent companies from making excessive investments and misallocating resources.

Gainers & Losers

Konica Minolta Holdings led advancers in the Nikkei 225 index shares with a rise of 12.14% followed by increases in NTT Data Corp. of 5.64%, in Mitsubishi Paper of 5.17%, in GS Yuasa Corp. of 5.13%, and Japan Tobacco of 4.87%.

Exporters also rose after the dollar gained to as high as 103.44 against the yen. Sony Corp increased 0.65% and Nikon Corp advanced 1.43%.

Yokogawa Electric led decliners in the Nikkei 225 index shares with a drop of 7.64% followed by losses in Mitsubishi UFJ Nicos of 6.82%, in Furakawa Co. Ltd of 5.21%., in Dainippon Print of 4.72%, and Japan Steel Work of 3.84%.

JVC, Kenwood to merge on October 1

Japan Today reported that Victor Co of Japan (JVC) and Kenwood Corp will finalize agreement to set up a holding firm on Oct 1 to integrate their business operations. The holding company will have Kenwood Chairman Haruo Kawahara as chairman and JVC President Kunihiko Sato as the president.