Japan Stocks: Capcom, IHI, Nitori, Tokyo Electric, Unicharm

Japan’s Nikkei 225 (NKY) Stock Average rose 85.58, or 1 percent, to 8,701.23 at the 3 p.m. close in Tokyo. The following were among the most active shares in the Japanese market today. Stock symbols are in parentheses after company names.

Capcom Co. (9697 JT), a developer of game software, gained 4.9 percent to 1,913 yen. Morgan Stanley increased the stock price estimate on Capcom to 2,600 yen from 2,200 yen, saying “medium-term earnings growth has yet to be sufficiently discounted.”

Dwango Co. (3715 JT), a provider of Internet contents, soared 10 percent to 140,000 yen. Citigroup Global Markets Japan Inc. boosted its investment rating on Dwango to “buy” from “hold,” saying the company has room to boost shares after a plunge in prices.

IHI Corp. (7013) (7013 JT), a heavy-machinery maker, rose 2.4 percent to 173 yen. The impact of the March 11 earthquake on IHI’s full-year operating profit will be about 4 billion yen ($52.3 million), half the earlier estimate, the Nikkei newspaper reported, citing an interview with President Kazuaki Kama.

Kyushu Electric Power Co. (9508 JT) fell 2.5 percent to 1,250 yen. The utility forecast a net loss of 16 billion yen for the six months ending September, compared with profit of 21.8 billion yen for the same period a year earlier, citing delays in restarting nuclear reactors and higher fuel costs. It didn’t provide a full-year forecast due to uncertainty about the timing of reactor restarts.

Nitori Holdings Co. (9843 JT), a furniture retailer, rallied 4.4 percent to 7,640 yen. CLSA Asia Pacific Markets boosted its equity rating to “outperform” from “underperform.”

Daiwa Securities Group Inc. lifted its target price on Nitori to 8,900 yen from 8,500 yen, saying the stock is relatively “undervalued.” Daiwa reiterated an “outperform” rating, saying the yen’s strength and improved distribution systems contributed to better-than-expected earnings for the retailer in the second quarter.

Seikagaku Corp. (4548) (4548 JT), a maker of materials used in pharmaceutical products, climbed 3.9 percent to 909 yen. The company raised its net-income forecast to 2.1 billion yen from 1.5 billion yen for the six months ending Sept. 30, citing an expected decline in research costs.

Tokyo Electric Power Co. (9501 JT), the utility at the center of the worst nuclear crisis since Chernobyl, tumbled 11 percent to 233 yen. Tokyo Electric may face 8.3 trillion yen fund shortage over the 10 years, the Nikkei newspaper reported. The figure is the worst-case scenario being considered by a panel looking into the utility’s finances, the report said. Also, Tokyo Electric promised not to seek debt relief from banks, according to the newspaper.

Unicharm Corp. (8113) (8113 JT), a maker of disposable diapers, gained 4 percent to 3,820 yen, the highest since at least August 1976. BNP Paribas SA boosted its equity rating on Unicharm to “buy” from “hold,” saying profit growth is set to accelerate in fiscal 2013. “For Unicharm, we believe the worst is over in Japan and that strong demand growth for disposable diapers and feminine care products in Asia should continue,” BNP said in a report.

Zuken Inc. (6947) (6947 JT), a developer of computer systems for engineering and design, climbed 4.7 percent to 560 yen. The company doubled its net income outlook to 970 million yen from 470 million yen for the year ending March 31, citing lower administration costs and a sale of shares in an affiliate.

To contact the reporter on this story: Norie Kuboyama in Tokyo at nkuboyama@bloomberg.net.

To contact the editor responsible for this story: John McCluskey at j.mccluskey@bloomberg.net.

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