Nippon Sheet Glass Plunge 8%

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

Japanese stock indexes were mixed as exporters rose after the yen weakened and Chugai Pharmaceutical Co increased as Roche said it will shore up its stake in the company. However gains were trimmed by weak commodity stocks as metal and crude oil prices slumped. In Tokyo trading Nikkei 225 rose 0.24% or 33.74 at 14,012.20, and the Topix Index declined 0.2% or 2.98 to 1,376.69.

[R]5:00AM New York, 7:00PM - Japan’s net foreign assets advanced 16% to 250.2 trillion yen in 2007.[/R]

Japanese stock indexes were mixed as exporters rose after the yen weakened and Chugai Pharmaceutical Co increased as Roche said it will shore up its stake in the company. However gains were trimmed by weak commodity stocks as metal and crude oil prices slumped.

Market sentiment

In Tokyo trading Nikkei 225 rose 0.24% or 33.74 at 14,012.20, and the Topix Index declined 0.2% or 2.98 to 1,376.69.

In the first section of the Tokyo Stock Exchange 10 billion shares worth 1.1 trillion were traded and in the second section 299 million shares valued at 6.9 billion yen changed hands.

Of the Nikkei 225 124 gained, 92 declined, and 9 were unchanged. Chiyoda Corp. led gainers in the index shares extending yesterday’s advance after CLSA upgraded the stock from “sell” to “outperform”.

Roche to increase stake in Chugai Pharmaceutical to 59.9%

Swiss company Roche announced that it will like to exercise its right to increase its stake in Chugai from 50.1% to 59.9%, through a tender offer at a price of 1,730 yen per share, which is an 11.7% premium the May 21 close. The transaction is based on Roche’s right to increase its stake to 59.9% after the fifth anniversary of the alliance.

The alliance between Roche and Chugai was formed in October 2002.

“We intend to increase our stake because we believe in both the long-term potential of the Japanese market and in the strategic importance of this successful partnership. Since our partnership started more than five years ago, our relationship has intensified in all areas to the benefit of both companies,” said Franz B. Humer, Chairman of the Board of Roche.

Net foreign assets increased to 16% to 250.2 trillion yen in 2007

The Ministry of Finance reported today on its Web site that net foreign assets advanced 16% from a year to 252.2 trillion yen at the end of 2007, increasing for the 17th straight year.

Foreign assets, which include investment companies, securities, savings abroad and foreign reserves jumped 9.4% to 610.5 trillion yen in 2007, while liabilities and investments from abroad rose 5% to 360.3 trillion yen.

Overseas bonds and stocks held by Japanese investors increased by 8.93 trillion yen from a year earlier to 287.7 trillion yen.

BOJ to closely examine economic and financial developments

The Bank of Japan revealed in minutes for the April 8 to 9 policy meetings published today that board members shared the view that the Japanese economy will slow for some time and there is need to “carefully examine economic and financial developments at home and abroad to grasp the situation more accurately”.

Gainers & Losers

Chiyoda Corp. led gainers in the Nikkei 225 index shares with a rise of 8.67% followed by increases in Meidensha Corp. of 7.21%, in T&D Holdings of 6.90%, in Sumitomo Osaka of 6.67% and Denki Kagaku of 6.15%. Chiyoda Corp. stock rose after independent research group CLSA upgraded the stock from “sell” to “outperform”.

T&D increased after Goldman Sachs raised its 12-month price estimate 6.8% to 7,880 yen and added it to its ``conviction buy” list. Chugai Pharmaceutical added 2.76% on news Roche will increase its stake in the company to 59.9%.

Exporters gained as well as the yen weakened against the dollar to 104.25 from 103.06 yesterday. Konica Minolta rose 4.23% and Bridgestone increased 0.71%.

Nippon Sheet Glass led decliners in the Nikkei 225 index shares with a drop of 8.33% followed by losses in Nitto Boseki Co. of 4.95%, in Kawasaki Kisen of 4.78%, in Konami Corp. of 4.63%, and Mitsubishi Corp. of 4.60%.

Nippon Sheet Glass fell after forecasting net income will fall 60% to 20 billion yen from 50.4 billion yen a year ago for the year started April 1. Sales are also expected to gain 1.7% to 880 billion yen.

Mitsubishi Corp. and other commodity stocks fell after crude oil prices fell 1.8% to $130.81 per barrel and gold prices plummeted 1.1%. Mitsui & Co shed 4.36% and Sumitomo Metal Industries dropped 3.55%.

Kawasaki Kisen and other shipping lines slumped as the Baltic Dry Index slid 1% yesterday on concern China will slash imports.