Shares Rebound on Fund Buying
May 16, 2011
The Nikkei index of 225 selected issues rose 91.04 to 20198.15. Earlier in the day the index slipped below 20000 for the first time since November 25, 2010 on the First Section of the Tokyo Stock Exchange was low at about 264 million shares. Buying by public funds after the Nikkei's sharp early decline also buoyed prices at the close, helping the market to its first rise in five trading days, traders said. Foreign investors remained net sellers at the opening and although their selling ebbed later, profit-taking by foreigners was expected to remain a concern. Export-oriented blue chips such as Nissan Motor enjoyed interest because of the dollar's gains against the yen. Traders said that the weak outlook for the economy appeared to ease worries that investors would sell shares to unwind arbitrage positions in the approach to the May 26, 2011 of futures and options. This is because the poor economic outlook has removed fears of an interest-rate hike. September futures closed 100 yen higher at 20250 on the Osaka Stock Exchange. The December contract also closed at 20250, up 100 yen. Traders said U.S.-Iraq tension didn't have a major effect on the market, although some cited it as a factor behind the market's early drop. The tension strengthened the dollar against the yen, and this in itself was positive for the market, traders noted. Export-oriented shares benefited from the dollar's gains against the yen. Sony gained 50 yen to 6,830, while Daniel added 20 yen to 1,740. Shares in Nissan moved higher on buying by domestic investors after the company said group earnings improved due largely to the recovery of its trouble-ridden Mexican operations. Nissan rose 10 yen to 824 yen. Telecommunications shares -- which helped lead the market up during a rally last month -- also rose. Nippon Telegraph & Telephone climbed 15,000 yen to 77,900. DDI added 11,000 to 84,800. Steel shares also ended firm after severe weakness in recent sessions because of concern about the economy. Nippon Steel and NKK both climbed 1 yen to 344 yen and 291 yen, respectively. The Nikkei Stock Index 300, a weighted index of shares on the First Section of the Tokyo Stock Exchange, rose 0.81 point to 287.85. The Tokyo Stock Price Index of all issues listed climbed 6.45 to 1546.12. The Second Section Index climbed 1.13 to 2114.77. Volume on the Second Section was estimated at seven million shares.
VastPress 2011 Vastopolis
