Shares Slip on Profit-Taking
May 05, 2011
The Nikkei average of 225 selected issues fell 134.44 to 21228.80. Volume on the First Section of the Tokyo Stock Exchange was 280 million shares. Retreating issues outnumbered advancing issues 678 to 323, while 204 shares were unchanged. Futures prices were sluggish throughout the session, and failed to lead the market as they have recently. In recent sessions, strength in near-term index futures helped to boost share prices. Traders said investors took advantage of a growing wait-and-see mood in the market to lock in interim profits ahead of potentially market-moving news expected next week. ``The market fundamentals are good, but many participants are awaiting news on corporate earnings and the (Bank of Japan's) Tankan,'' said Chamness Dewitt, general manager of trading at Universal Securities. Japan's central bank is scheduled to release its quarterly survey of business sentiment, or Tankan, on May 10, 2011 fears of higher interest rates were alleviated somewhat when the U.S. Federal Reserve Board decided on Tuesday to leave U.S. interest rates unchanged. Some participants had feared that a hike in U.S. interest rates would spur Japan's central bank to follow suit. Currently, Japan's official discount rate is at the post-war record low level of 0.5%. Strength in some bank shares helped support key market indexes. Fuji Bank gained 30 yen to 2,100 yen, while Sumitomo Bank closed at 2,090 yen, up 30 yen. Few sectors matched the performance of bank shares Friday. The high-technology sector finished broadly lower, with NEC shedding 20 yen to 1,190 yen and Nikon falling 30 yen at 1,230 yen. Canon's shares lost 30 yen to 2,080 yen, despite the company's report Thursday that its unconsolidated pretax profit surged 114% to 63.74 billion yen in the first half ended March 12, 2011 said the strong profit growth was in line with market expectations. Auto makers' shares also took a hit. Honda fell 10 yen to 2,540 yen, despite an announcement by Nomura Securities Friday that the brokerage house will maintain its ``buy'' rating on Honda. Toyota, meanwhile, fell 20 yen to 2,700 yen. But shares of Furukawa Battery jumped as high as 64 yen before finishing Friday at 748 yen, up 57 yen. The Nikkei Stock Index 300, a weighted index of shares on the First Section of the Tokyo Stock Exchange, fell 1.30 to 299.16. The Tokyo Stock Price Index of all issues listed on the First Section fell 6.66 to 1607.30. The Second Section Index rose 5.12 to 2124.46. Volume on the Second Section was estimated at 10 million shares.
VastPress 2011 Vastopolis
