Jan. 17 (Bloomberg) -- Takuma Co. Ltd., a builder of waste incinerator and water treatment plants, has risen 26 percent this year through the end of last week, boosted by a recovery in demand for incinerators in Japan.
That’s the best performance in the 100-member WilderHill New Energy Global Innovation Index in 2011, which has gained 2.9 percent thus far this year. The shares of Osaka-based Takuma closed 4 yen lower at 280 yen today on the Tokyo Stock Exchange.
“Takuma rose as traders bought mid- and small-size shares of low valuation,” Ryo Tazaki, an analyst at Nomura Securities Co. Ltd., said today by phone. “Also, orders for incinerators are recovering.”
Demand for trash-burning services had been sluggish since 2003 after companies renovated or replaced old facilities to meet tighter air quality standards set by the government, according to Masahiko Izumi, Takuma’s accounting manager.
The NEX index that includes Takuma is having its best two-week start since at least 2007, Bloomberg data shows, rising 2.7 percent in the year-earlier period and dropping 5.6 percent and 8.3 percent for the two previous year-ago periods respectively.
The market is recovering as some of Japan’s incinerators, which usually have a 15- to 20-year life span, still need to be replaced, Izumi said by phone.
Worst performing on the NEX index this year is Zehjiang Yankon Group, a Shangyu, Zhejiang province-based company that makes energy-saving lamps and bulbs, down 21 percent after dropping 6.1 percent today.
To contact the reporter on this story: Chisaki Watanabe in Tokyo at firstname.lastname@example.org.
To contact the editor responsible for this story: Reed Landberg at email@example.com.