Nintendo Rises as New Titles Spur Overseas Sales: Tokyo Mover
Nintendo Co. (7974) rose to its highest level in almost two years in Tokyo trading on speculation new video game titles are boosting overseas revenue and the shares may join the Nikkei 225 Stock Average.
The world’s largest video-game console maker jumped 4 percent to 14,050 yen, the highest close since July 2011.
Games including “Animal Crossing: New Leaf,” released in the U.S. last month, helped Nintendo’s 3DS handheld player maintain its position as the best-selling game platform in the country, according to market researcher NPD Group Inc. The stock may be included in the Nikkei index following the merger of exchanges in Tokyo and Osaka while a report that a ban on consoles may be lifted in China is also boosting the shares, said Takashi Oba, a senior strategist at Okasan Securities Co.
“The stock is up from mixing all these factors,” said Oba. “The stock is in a upward trend. There may be some investors who are forced to buy back the shares.”
Nintendo is trying to revive sales by adding new titles for the 3DS and Wii U home consoles. The Kyoto, Japan-based company said last week it had sold 225,000 of its 3DS handheld consoles in the U.S., the world’s biggest video-game market.
This month’s merger of the cash-equity trading platforms of Tokyo Stock Exchange and Osaka Securities Exchange saw Nintendo’s primary listing transferred to Tokyo making it eligible for inclusion in the Nikkei.
“The integration fueled speculation that Nintendo will be included,” said Hideki Yasuda, an analyst at Ace Securities Co. in Tokyo.
Mizuho Financial Group Inc. (8411) last week raised its price target for the console maker to 14,000 yen from 12,000, citing higher 3DS sales. New titles may also increase sales for Nintendo, Mizuho said.
China may end its 13-year ban on the sale of video-game consoles, the South China Morning Post reported July 10.
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