Japanese Stocks: Fanuc, Isuzu, JFE, Komatsu, Nisshinbo, Sony
Japan’s Nikkei 225 (NKY) Stock Average increased 1.2 percent to 9,060.80 at the 3 p.m. close of trading in Tokyo. The following were among the most active shares in the Japanese market today. Stock symbols are in parentheses after company names.
Machinery makers: JPMorgan Chase & Co. initiated coverage of 10 Japanese machinery stocks, and rated the overall sector as “neutral,” according to a report by analyst Toru Nakahashi dated yesterday.
Fanuc Corp. (6954) (6954 JT), a maker of factory-automation systems, gained 2.8 percent to 12,970 yen. The company’s investment rating was initiated as “overweight” by JPMorgan, which named the stock as its “top pick” in the sector. The brokerage set a share price target of 16,000 yen.
Komatsu Ltd. (6301) (6301 JT), a maker of construction machinery, advanced 4.2 percent to 2,109 yen. The company was rated “overweight” by JPMorgan, which set its share price target at 2,900 yen. Komatsu has a “strong regional mix of projects,” JPMorgan said.
Hitachi Construction Machinery Co. (6305 JT), which sells and repairs construction equipment, advanced 4.6 percent to 1,491 yen. The company is attractive as the share price reflects “excessively pessimistic scenarios,” JPMorgan said. The stock was rated “neutral” by the brokerage, which set its share price target at 1,550 yen.
Steelmakers: The stronger yen and lower resources prices will trim raw material costs for Nippon Steel Corp. (5401) (5401 JT), JFE Holdings Inc. (5411) (5411 JT), Sumitomo Metal Industries Ltd. (5405) (5405 JT) and Kobe Steel Ltd. (5406)(5406 JT), the Nikkei newspaper reported today.
Nippon Steel increased 3.1 percent to 236 yen. JFE advanced 2.8 percent to 1,816 yen. Sumitomo Metal Industries climbed 2.5 percent to 164 yen. Kobe Steel gained 2.8 percent to 146 yen.
Isuzu Motors Ltd. (7202 JT), a maker of trucks and automobile parts, jumped 5.3 percent to 359 yen. The company’s mini-vehicle sales gained 25 percent in August, according to the Japan Auto Dealers Association and Japan Mini Vehicle Association.
Morozoff Ltd. (2217 JT) advanced 2.3 percent to 273 yen. The confectioner boosted its full-year net income outlook 38 percent to 220 million yen, citing lower administration and personnel costs.
Nisshinbo Holdings Inc. (3105) (3105 JT), a maker of textiles, sank 4.5 percent to 665 yen. The company was cut to “neutral” from “buy” by Nomura Holdings Inc. The share price target was also reduced to 730 yen from 900 yen.
Sony Corp. (6758) (6758 JT), Japan’s largest exporter of consumer electronics, increased 2 percent to 1,698 yen. The company will merge its networks for music, video and games into a re-branded Sony Entertainment Network, Executive Deputy President Kazuo Hirai said in Berlin. Also, Sony Chief Executive Officer Howard Stringer said sales are higher than before a hacker attack on its network earlier this year.
Yamato Kogyo Co. (5444 JT), a maker of railway-track components, rose 2.1 percent to 2,007 yen. The company said it will buy back up to 0.14 percent of its outstanding shares through Sept. 30.
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