Fujistu, Isuzu Lift Stocks in Tokyo

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

Japan stock indexes advanced on strong earnings results and forecasts from Fujitsu and Isuzu. Isuzu Motor Corp also reported yesterday that it expects net profit to rise 13.2% to 85 billion yen from 71 billion on higher sales in countries that produce raw materials. Fujitsu forecasts net income for the year will rise 107% to 100 billion yen from 48 billion in the fiscal 2007.

[R]5:00AM New York, 7:00PM Tokyo- Fujitsu and Isuzu outlook lift Tokyo.[/R]

Japan stock indexes advanced on strong earnings results and forecasts from Fujitsu and Isuzu fueling speculation that Japanese companies will largely be insulated from the deteriorating conditions in the global financial markets.

Market sentiment

In Tokyo trading Nikkei 225 rose 1.53% or 210.37 at 13,953.73, and the broader Topix Index increased 1.3% or 17.26 at 1,360.05.

In the first section of the Tokyo Stock Exchange 8.5 billion shares worth 1 trillion yen were traded and in the second section 130 million shares valued at 4.5 billion yen changed hands.

Of the Nikkei 225 stocks 173 gained, 42 declined, and 10 were unchanged. Fujitsu Ltd. led advancers in the index shares with a rise of 13.18% after the company forecasted that net income in the fiscal year 2008 will probably rise by 107% to 100 billion yen.

Fujitsu forecasts profit to rise 107% in the fiscal 2008

IT-based business solutions provider Fujitsu said yesterday in a statement accompanying its consolidated fiscal 2007 financial results that it forecasts net income for the year will rise 107% to 100 billion yen from 48 billion in the fiscal 2007. Net sales in the period are expected to increase 0.4% to 5.35 trillion yen.

For the fiscal 2007 results, consolidated operating income gained 12.7% year-on-year to 204.9 billion yen due to higher sales of solutions/SI, servers, PCs and mobile phones as well as the success of cost control initiatives throughout the Fujitsu Group.

Mitsubishi UFJ Securities Co. raised its rating on the stock to ``outperform'''' from ``market perform’’.

Isuzu forecasts profit to slow to 13.2%

Isuzu Motor Corp also reported yesterday that it expects net profit to rise 13.2% to 85 billion yen from 71 billion on higher sales in countries that produce raw materials.

Shonai Bank Ltd to merge with Hokuto Bank Ltd

Bloomberg news reported today quoting NHK that Shonai Bank Ltd, which is partly to form a new holding company to merge their businesses. Mizuho Financial Group Inc holds 5.7% equity in Shonai.

Gainers and Losers

Fujitsu led advancers in the Nikkei 225 index shares with a rise of 13.18% followed by increases in Nikon Corp. of 12.52%, in NSK Ltd. of 10.58%, in Fujikura Ltd. of 9.35%, and Pioneer Corp. of 8.25%.

Fujitsu rose after the company reported on its website yesterday that profit for the fiscal year 2008 will rise by more than 107% to 100 billion yen.

Mitsubishi UFJ Securities Co. raised its rating on the stock to ``outperform'''' from ``market perform,'''' citing that its target was realistic.

Nikon Corp gained also after saying yesterday it will buy 4 million shares, the first time it has bought its own stock since June 2003.

Automakers gained after Isuzu Motor Corp. reported that it expects net income for the fiscal year 2009 to gain 13.2% to 85 billion yen. Nissan advanced 3.23% and Mizuho Financial Holdings edged up 2.75%.

Marui Group led decliners in the Nikkei 225 index shares with a fall of 9.72% followed by losses in Clarion Co. Ltd of 4.50%, in Daiichi Sankyo of 4.20%, in Hokuetsu Paper of 3.15%, and Mitsubishi Paper of 2.87%.