Bank, Steel Shares Lift Bourse
May 04, 2011
The Nikkei 225 average rose 88.22 to 21363.24. Advancers led decliners 531 to 453, with 223 issues unchanged. The Second Section Index advanced 7.52 to 2119.34 on volume of about 11 million shares. Investor confidence continued to rise in the wake of the U.S. Federal Reserve's decision to leave interest rates unchanged. Thursday's rise came despite a late wave of profit-taking by domestic investment trust funds, analysts said. Interest-rate-sensitive banking and steel shares mostly gained amid buying by overseas investors. Low interest rates reduced banks' cost of capital and boosted their operating revenues. The sector also benefited from buying linked to the Tokyo Stock Price Index on the First Section of the Tokyo Stock Exchange. Banks are heavily weighted in the broader-based index. Green Cross fell 27 yen to 474. The Osaka district attorney's raid of the drugmaker's office to investigate allegations over the company's HIV-tainted pharmaceutical products continued to weaken the stock. Green Cross said Wednesday it expects 5.8 billion yen in extraordinary losses this fiscal year, up from 3.0 billion yen projected in June, from compensation payment and legal fees to patients who contracted the AIDS-causing virus. On the over-the-counter market, Plaza Create, a provider of photo-finishing services, gained 2,000 yen to 18,000. The company announced Wednesday that it will acquire five overseas companies involved in the sale of Vivitar photographic equipment for $36 million. Under the agreement, Plaza Create will acquire all of the shares of Vivitar Inc. of the U.S., Vivitar France S.A., Vivitar (Asia) Ltd. of Hong Kong and Vivitar Japan K.K. It will also take over the sales operations of Vivitar (Europe) Ltd. of the U.K.
