Nomura Holdings Inc. (8604) led Japanese securities firms higher in Tokyo trading after the country’s biggest brokerage posted quarterly profit that more than tripled to the highest in seven years.
Nomura shares rose as much as 4.3 percent, the biggest intraday gain in two weeks, and traded 3.3 percent higher at 787 yen as of 10:24 a.m. in Tokyo. The Topix Securities and Commodity Futures Index was the best performer among 33 industry groups on the benchmark Topix, which rose 0.3 percent.
Earnings for the fourth quarter beat analysts’ estimates as brokerage commissions and investment banking fees jumped, figures from the Tokyo-based securities firm showed on April 26. Prime Minister Shinzo Abe’s push to end deflation and stimulate the economy has spurred Japanese equities and weakened the yen, improving prospects for domestic brokerages.
“Nomura’s earnings were good enough to alleviate investors’ anxiety over its overseas operations and prove that its retail business is in excellent condition,” said Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management Co. in Tokyo. “The results are symbolic of how the brokerage sector is improving.”
Net income rose to 82.4 billion yen ($840 million) for the three months ended March 31, from 22.1 billion yen a year earlier, Nomura said on April 26. The result exceeded the 56 billion yen average estimate of nine analysts.
Revenue climbed 27 percent from a year earlier to 720.1 billion yen. Brokerage commissions jumped 39 percent and investment banking fees rose 47 percent. Still, pretax loss from overseas widened to 42 billion yen from 24.6 billion yen a year earlier.
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