Tokyo, Nov. 12 (Jiji Press)–The key Nikkei average ended a tad higher on the Tokyo Stock Exchange Wednesday supported by brisk purchases of telecom issues, but the broad market showed a mixedperformance.
The benchmark Nikkei average rebounded in the morning in a natural correction to its recent tumble, but moved on a soft note for most of the afternoon session reflecting investor disappointment at stocks’ top-heaviness, brokers said.
The 225-issue Nikkei average finished up 19.18 points at 10,226.22. On Tuesday, the average slumped 297.50 points.
The TOPIX index of all first-section issues ended down 1.15 points at 1,006.16. It lost 26.06 points in the previous session.(MORE)Nikkei Ends Modestly Higher Backed by Telecoms
Despite the small rise in the Nikkei average, declining issues outnumbered gainers 921 to 486 on the first section, while 121 issues ended flat.
Volume came to 1,044 million shares against Tuesday’s 1,353 million shares.
Wiping off the early gains, stocks moved softer in the afternoon as hedge selling of stock index futures induced arbitrage selling. Sentiment was hurt as the four major banking groups, all of which bounced back in the morning, turned patchy, brokers said.
The day’s trading was dominated by short term players like individuals and brokerage house dealers, as indicated by the fact that the Nikkei average was partly swayed by the moves of internet business investor Softbank, seen as their benchmark stock.
Meanwhile, foreign investors were seen continuing selling ahead of many hedge funds’ book closings this month, while Japanese institutional investors took to the sidelines.
Kenichi Hirano, equity general manager at Tachibana Securities Co., said, “Disappointment spread after technical charts showed weak signs and the morning rebound, which was dependent on buying from domestic players, failed to be sustained”(MORE)Nikkei Ends Modestly Higher Backed by Telecoms
Telecom industry leader NTT scored a maximum allowable daily gain following its announcement that it posted biggest-ever group net profit for April-September. Group firms NTT DoCoMo and NTT Data and rival KDDI also enjoyed gains.
Drug makers showed strength, including Takeda and Yamanouchi.
Softbank ended higher.
In contrast, general contractors like Taisei, Obayashi and Shimizu were weaker.
Yamato Transport was clobbered by selling after the door-to-door parcel delivery service operator sharply revised downward its earnings estimate for the current business year to March 2004.
In index futures trading, the December contract on the Nikkei average ended flat at 10,220 on the Osaka Securities Exchange.END
