Japan Stock Market Operator Boosts Profit Outlook

Japan Exchange Group Inc., which runs the nation’s biggest stock market, boosted its profit and dividend forecasts on increased trading. Shares pared gains as the revised outlooks missed analyst estimates.

The operator of the Tokyo and Osaka cash-equity and derivatives exchanges raised its net-income projection for the fiscal year ending March 31 by 26 percent to 26.5 billion yen ($224 million). That compares with analyst predictions for 32.3 billion yen. JPX expects to pay an annual dividend of 44 yen per share, up from its previous target of 36 yen, it said in a statement today.

The shares gained 3.2 percent to 2,769 yen as of 2:01 p.m. in Tokyo, paring an advance of as much as 3.9 percent before the announcement. The benchmark Topix index rose 1.5 percent.

“The market isn’t necessarily taking this news positively,” said Jun Shiota, an equity analyst at Daiwa Securities Capital Markets Co. in Tokyo who has an underperform rating on JPX. “The point is whether they beat expectations.”

JPX raised its operating-profit target 23 percent to 42.5 billion yen, compared with analysts’ estimates for 49.7 billion yen. Analysts had predicted a dividend of 47.5 yen per share.

The bourse operator said the projected jump in profit is due to higher trading value and volumes “in light of recent market conditions.” JPX’s new assumed daily average trading value for stocks is 2.6 trillion yen, a 300 billion yen increase on the previous estimate in October, JPX said.

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