Friday November 20, 08:06 AM
Nikkei falters, first 4-wk losing streak in a year
By Masayuki Kitano
TOKYO, Nov 20 (Reuters) - Japan's Nikkei (news) stock average fell
0.5 percent on Friday and logged its first four-week losing
streak in over a year, with
Sony (Munich: 853687 - news) sliding after its new
growth strategy failed to reassure investors.
Helping to temper the Nikkei's decline were gains in banking
stocks, battered recently by concerns about fundraising after top
lender Mitsubishi UFJ Financial Group announced a
massive share sale this week.
The Nikkei slid 2.8 percent on the week for its fourth
straight weekly drop, the first such losing streak since a four-
week period during September-October 2008, when equities tumbled
globally on a wave of deleveraging and the unwinding of risky
carry trades.
The Nikkei extended its declines this week, hurt by a recent
flurry of equity financing, uncertainty about the economic
policies of the new Democratic Party-led government and the yen's
rise against the dollar.
Adding to the selling pressure was loss-cut selling by
Japanese retail investors in margin trading, and there was also
some talk of selling by overseas investors during the week.
'When you think about why shares have been falling, one
reason is that with the change in the government, it has become
hard to get a good read on economic policy,' said Tsutomu Yamada,
market analyst at Kabu.com Securities.
'The key is whether they can come up with a strategy that
will convince people that there won't be a double-dip in the
economy next year or in the next fiscal year,' Yamada said.
The Nikkei fell 51.79 points to a four-month closing low of
9,497.68.
Trade was active, with 2.1 billion shares changing hands on
the Tokyo exchange's first section compared to last week's daily
average of 1.7 billion. Advancing shares beat declining ones 829
to 708.
The Nikkei may be poised for a rebound in the near-term with
the relative strength index showing it has been over-sold.
Support for the Nikkei lies at the 200-day moving average of
9,344.25, which is also very close to a 38.2 percent Fibonacci
retracement of its rise to an end-August peak of 10,767 from an
early March trough of 7,021.28. Below that support lies at the
Nikkei's July 13 low near 9,050.
The broader Topix index edged up 0.1 percent to 838.71 .
Tokyo's stock market will be closed on Monday for a public
holiday.
TECH TROUBLES
Sony, which is heading for its second straight annual loss,
said on Thursday that it would launch 3D TVs and new networked
products and services as part of a strategy help it return to
growth.
But Sony also pushed back an elusive target of an operating
profit margin of 5 percent to the financial year to March 2013.
That target had been set by CEO Howard Stringer in 2005 for the
year to March 2008.
Sony shed 2.4 percent to 2,410 yen after hitting a low of
2,375 yen, its lowest level in nearly four months.
Advantest Corp and other chip-related shares slid,
following falls by U.S. peers after a brokerage cut its growth
outlook for the semiconductor industry.
U.S. tech stocks were hammered on Thursday after Bank of
America-Merrill Lynch (NYSE: MER - news) cut its 2010 growth outlook for the
semiconductor industry on concerns about a rising inventory glut,
and downgraded 10 stocks including Intel Corp (NASDAQ: INTC - news) .
Advantest (Berlin: VAN.BE - news) , which makes chip testing equipment, fell 2.9
percent to 2,030 yen, while Tokyo Electron (Frankfurt: 865510 - news) lost 3
percent to 4,860 yen. Nikon Corp (Berlin: NKN.BE - news) , which makes steppers,
shed 2.8 percent to 1,592 yen.
Among the market's gainers was Mitsubishi Chemical Holdings , which jumped 9.2 percent to 321 yen after UBS (Virt-X: UBSN.VX - news) and
Nomura Securities upgraded the company's shares.
Both brokerages cited Mitsubishi Chemical's announcement on
Thursday that it would launch a roughly 228 billion yen ($2.6
billion) bid to buy acrylic fibre and resins maker Mitsubishi
Rayon.
Mitsubishi UFJ Financial Group rose 1.1 percent to 471 yen,
while Japan's No. 3 bank, Sumitomo Mitsui Financial Group gained 3.5 percent to 2,815 yen and Mizuho Financial
Group climbed 1.9 percent to 158 yen.
(Additional reporting by Elaine Lies and Takeshi Yoshiike;
Editing by Joseph Radford)
|
|
|
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
