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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    July 19, 2007

    Consumer finance sector up on merger news

    Filed under: Companies, Nippon Steel, Mitsubishi Estate, JFE, Tokyo Electric Power, Aiful, Takefuji, Promise, Sanyo Shinpan, NTT Urban Development

    Tokyo’s equities markets were higher on Thursday, as the Nikkei 225 added 0.6 percent to 18,116.57 and the Topix index gained 0.5 percent to 1,768.

    Tokyo Electric Power (TYO: 9501) continued to decline after reports of earthquake damage to one of its nuclear power plants.

    It dropped another 5.6 percent to ¥3,400 after Nomura Securities (TYO: 8604; NYSE: NMR; SGX; N33) reduced its recommendation from “neutral” to “reduce”.

    The real estate sector also saw declines, with Mitsubishi Estate (TYO: 8802) down 0.9 percent to ¥3,180 and NTT Urban Development (TYO: 8933) falling 1.4 percent to ¥217,000.

    The consumer finance sector saw advances after it was reported that Promise (TYO: 8574) and Sanyo Shinpan Finance (TYO: 8573) are about to agree to a merger.

    Trade in both companies was halted after the reports, but Promise had added 5.9 percent to ¥3,790 and Sanyo Shinpan was 12.2 percent higher to ¥3,600 before that occurred.

    Elsewhere in the sector, Takefuji (TYO: 8564) gained 7.7 percent to ¥4,404 and Aiful (TYO: 8515) was up 11.2 percent to ¥3,480.

    The steel sector was up in anticipation of the release of JFE Holdings’ (TYO:5411) quarterly results, due at the end of the month.

    JFE added 4.4 percent to ¥8,270, while Nippon Steel (TYL: 5401) was 4.7 percent higher to ¥919.





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