Sumitomo Mitsui, Mizuho to Raise $4.3 B

123jump.com Staff
24 Aug, 2009
New York City

Tokyo stocks are expected to trade sideways after a sharp rally in stocks in resource linked stocks and exporters. More banks in Japan plan to raise capital. Sumitomo Mitsui Financial propose to raise $3.5 billion and Mizuho Financial prepares to raise nearly $750 million in preferred stocks.

[R]8:00 AM Tokyo – Tokyo stocks are expected to trade sideways after a sharp rally in stocks in resource linked stocks and exporters. More banks in Japan plan to raise capital. Sumitomo Mitsui Financial propose to raise $3.5 billion and Mizuho Financial prepares to raise nearly $750 million in preferred stocks.[/R]

Stocks in Tokyo are expected to open higher after a rally more than 3% on Monday.

In New York trading, market rally in morning lost shine in the late hours as commodities prices increased and banks retreated. Crude oil futures edged to a new-high for the year and agriculture commodities closed higher.

In European trading, market indexes in Germany and France reached 11-month high and UK indexes closed up 10-month high.

The Nikkei 225 Index in Tokyo closed higher 342.85 or 3.35% to 10,581.05 after home sales in the U.S. jumped on Friday. Of the stocks in the index, 216 increased, 6 decreased and 3 were unchanged.

More banks in Japan plan to raise capital. Sumitomo Mitsui Financial propose to raise 340 billion yen or $3.5 billion and Mizuho Financial prepares to raise 72.5 billion yen or nearly $750 million in preferred stocks. Mizuho securities will pay 4.29% dividend.

Gainers & Losers

In yesterday’s trading exporters, resource linked stocks and shippers and traders advanced.

Auto stocks advanced on the hopes that the rebate program for old cars may be extended as Japanese cars among the best selling cars under the program.

Toyota Motor Corp increased 2.3% to 4,070 yen, Nissan Motor increased 1.8% to 689 yen and Honda Motor increased 3.2% to 3,050 yen.

A rise in commodities prices lifted miners and refiners. Inpex Corp increased 5.4% to 758 yen, Mitsui Mining & Smelting Co soared 6% to 285 yen, Nippon Oil Corp added 2.2% to 542 yen and Nippon Steel increased 2.5% to 377 yen.

Exporters gained on the speculation that sales may gain in the U.S. on better than expected home sales.

Ricoh Co Ltd surged 5.1% to 1,344 yen, Olympus Corp soared 6.6% to 2,730 yen and Canon Inc increased 6.3% to 3,720 yen.

Only six stocks in the Nikkei 225 index declined. Credit Saison led the decliners with a loss of 1.5% followed by losses in West Japan Railways, Nikon Corp, Mitsubishi Rayon, Tokyo Power and Sumitomo Realty.

Sumitomo Mitsui Financial Group increased 1.7% to 4,090 yen and Daiwa Securities Group increased 1.6% to 569 yen. SMFG plan to launch an investment bank covering technology, consumer financial and energy sectors according to the company. The Nikko Cordial and underwriting divisions of Nikko Citigroup Ltd were sold to SMFG.

Nikkei 200 Average Movers

Credit Saison Co. Ltd led the decliners in the Nikkei 225 index of 1.4% followed by losses in West Japan Railway Co of 0.9%, in Nikon Corp of 0.7%, in Mitsubishi Rayon Co Ltd of 0.6% and in Tokyo Electric Power Co Inc of 0.2%.

Isuzu Motors Ltd led gainers in the Nikkei 225 index with a rise of 8.4% followed by gains in Advantest Corp of 6.8%, in Olympus Corp of 6.6% and in Toho Zinc Co Ltd of 6.5%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 342.85 or 3.35% to 10,581.05, Hang Seng index in Hong Kong increased 336.92 or 1.67% to 20,535.94 and CSI 300 index in China higher 25.98 or 0.81% to 3,229.60. ASX 200 index in Australia increased 135.50 or 3.16% to 4,426.10. The FTSE Bursa KL Composite index in Malaysia closed higher 10.70 or 0.92% to 1,174.49.

The Kospi Index in South Korea increased 31.24 or 1.98% to close at 1,612.22. SET index in Thailand closed higher 8.57 or 1.33% to 653.20 and JSE Index in Indonesia increased 41.98 or 1.80% to 2,375.87. The Sensex index in India increased 387.92 or 2.55% to 15,628.75.

North American Markets

Dow Jones Industrial Average increased 3.32 or 0.03% to a close of 9,509.28, S&P 500 Index decreased 0.56 or 0.1% to 1,025.57, and Nasdaq Composite Index edged lower 2.92 or 0.14% to close at 2,017.98. Toronto TSX Composite Index decreased 41.21 or 1.1% to 304.69.