Tokyo Market News: investment market news from the Nikkei and Topix indices
Tokyo Market News: investment market news from the Nikkei and Topix indices

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    December 21, 2006

    Utilities up 17.5 percent since September

    Filed under: Companies, Nippon Steel, Toyota, Nikko Cordial, Komatsu, Sumitomo Metal Industries, Tokyo Electric Power, Kansai Electric, Credit Saison, Aiful, Sanyo Shinpan

    Weakness in the yen helped the Tokyo equities markets to make gains on Thursday. However, advances were limited on the Nikkei because of a scandal in the consumer finance sector. The Nikkei 225 closed at 17,047.83, a gain of 0.2 percent, while the Topix index added 0.3 percent to 1,671.30.

    Export-focused sectors were especially helped by the weak yen. Toyota added 1.7 percent to ¥7,680, while construction equipment manufacturer Komatsu gained 3.4 percent to ¥2,410.

    The utilities sector also saw gains again, as the sector has gained 17.5 percent since the end of September on high dividend payments to shareholders. Tokyo Electric Power was 1 percent higher to ¥3,910 and Kansai Electric Power was up 1.6 percent to ¥3,260.

    The steel sector advanced on positive comments from Merrill Lynch and on the possibility of further consolidation in the sector worldwide. Nippon Steel gained 0.5 percent to ¥601 on rumors that it will gain control of Brazilian steel company Usiminas. Meanwhile, Sumitomo Metal Industries added 4.9 percent to ¥493 on a Merrill Lynch upgrade from “neutral” to “buy”.

    Consumer finance companies were affected by a 12-day business suspension of Sanyo Shinpan for improper practices. Shinpan dropped 5.5 percent to ¥3,260, while Aiful fell 5.1 percent to ¥3,360 and Credit Saison was 2.7 percent lower to ¥4,020.

    In the securities sector, Nikko Cordial began a comeback after being fined for accounting irregularities, adding 7.1 percent to ¥1,237.





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