Nomura to Raise $4 B, Tokyo Stocks Fall

123jump.com Staff
15 Apr, 2009
New York City

New condo offerings in Tokyo metropolitan area decline 46.2% to 2,390 units in March. Nomura seeks Japanese government approval to raise $4 billion in the UK after it successfully raised $100 million in South Africa. The benchmark index Nikkei 225 Average fell 1.1%.

[R]5:00AM New York, 7:00PM Tokyo- New condo offerings decline 46.2% to 2,390 units in March. Nomura seeks Japanese government approval to raise $4 billion in the UK after it successfully raised $100 million in South Africa.[/R]

The benchmark stock index shed 1.1% in Japan after the U.S. reported that retail sales unexpectedly dropped in March. Investor sentiment also weakened after a private report indicated that new condo offerings plunged 46.2% in March.

In Tokyo trading Nikkei 225 index fell 1.1% or 99.72 to 8,742.96, and the broader Topix Index slipped 1% or 8.17 to 835.25.

In the first section of the Tokyo Stock Exchange 11 billion shares worth 663 billion yen were traded and in the section 290 million shares worth 1.7 billion yen changed hands.

Of the Nikkei 225 index stocks, 67 increased, 147 declined, and 11 were unchanged. Maruha Nichiro led gainers in the index shares with a rise of 6.1%.

Nomura Holdings Inc through its UK subsidiary is seeking Japanese government approval to raise as much as 400 billion yen or $4 billion in the next two years. The battered brokerage was forced to raise $3 billion in Japan to replenish its capital for the first time in twenty years after it reported four quarterly losses in a row. The news was first reported on Bloomberg News.

U.S. Retail Sales Decline 1.1% in March

The U.S. Commerce Department reported that retail sales declined 1.1% in March from a revised increase of 0.3% in February, falling the most in three months.

Analysts had earlier forecasted that sales will rise 0.3%. Sales dropped for furniture stores, clothing stores and auto sales. Auto sales slumped 2.3% in the month.

Excluding auto sales, retail sales fell 0.9% after increasing 1%.

Separately the Labor Department noted that wholesale prices climbed 1.2% in March on falling prices of gasoline and food.

Gas prices slipped 13.1% and food prices dipped 0.7%.

New Condo Offerings Fall in March

Nikkei News reported today that the Real Estate Economic Institute showed that new condominiums up for sales in Greater Tokyo tumbled 46.2% to 2,390 units from the same period a year ago, dropping for the 16th consecutive month.

Gainers & Losers

Maruha Nichiro led advancers in the Nikkei 225 index shares with a rise of 6.1% followed by gains in Aeon Co. Ltd of 5.2%, in CSK Holdings Corp. of 4.5%, in Mitsui OSK Lines of 4.4%, and Nippon Paper Group of 3.4%.

Paper companies increased after crude oil prices eased 1.3% to $49.4 per barrel. Oji Paper shed 3.4% and Hokuetsu Paper plummeted 3.1%.

Mitsui Chemicals led decliners in the Nikkei 225 index shares with a fall of 8.4% followed by losses in Shinko Securities of 8.3%, in Nomura Holdings of 7.7%, in Olympus Corp. of 7.7%, and Daiwa Securities of 7.3%.

Japan Supports Elpida Ties with Taiwan

Nikkei News reported today an official in the Ministry of Economy, Trade and Industry says that Japan will support Elpida Memory Inc. ties with the Taiwanese government.