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Wednesday 15th of October 2008
August 28, 2006

Tokyo markets lower on session


by Elaine Frei

The Tokyo equities markets were lower on Monday, with the Nikkei 225 falling by 1.1 percent to 15,7562.59 and the Topix index dropping 1.2 percent to 1,600.25.

There were gainers on the day, however. Nippon Steel added 1.2 percent to ¥495 on a report that it will pay shareholders a dividend for the first time in 14 years. The divided is expected to be around ¥4, and is a result of higher than expected earnings. In the electronics sector, Toshiba gained 1 percent to ¥783 on an announcement from Microsoft that Toshiba will make its “Zune” portable media player, meant as competition to the iPod from Apple.

The paper sector was lower on the session. Hokuetsu was down by 2.3 percent to ¥758 after it was revealed that it is discussing an alliance with a Korean manufacturer. This would reportedly help it repel Oji Paper’s takeover bid. Oji, which has offered Hokuetsu ¥800 per share, was lower as well, by 0.3 percent to ¥688.

Softbank declined by 5.6 percent as investors were still worried that it had taken on too much debt with its purchase earlier this year of Vodafone’s mobile phone division. Last week, Lehman Brothers issued a decreased 12-month share price estimate on Softbank from ¥1,125 to ¥900.

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