Kanebo continues value loss in delisting suggestion

Investors in Japan reacted negatively to several reports that were released after the markets closed on Tuesday to send the market down on Wednesday.

The biggest loser was toiletries and textiles maker Kanebo, which has been suffering the fallout of an accounting scandal. On reports that the Tokyo Stock Exchange will likely delist it, Kanebo fell 15.3 percent to ¥533.

Softbank, an Internet company, reported that it has had its fourth annual operating loss in a row, sending its shares down 1.95 percent to ¥4,020. NTT DoCoMo, Japan’s largest mobile phone operator, reported its first decline in operating profits. This news sent its shares down by 1.2 percent to ¥168,000.

Gamemaker Konami also reported lower profits for 2004-05, and blamed the decline on Japan’s falling birthrate. The report sent Konami’s shares 1.3 percent lower, to ¥2,260.

Not all the news was bad, though. Electrical machinery manufacturer Sumitomo Heavy Industries reported that it enjoyed a 40 percent rise in net profits in 2004-05, which brought them a record profit of ¥22.79 billion. The news sent the company’s shares up 3.1 percent to ¥465.

All this combined to send the Nikkei 225 down 0.3 percent to 11,120.70, while the Topic fell 0.4 percent to 1,145.30.

Story link: Kanebo continues value loss in delisting suggestion