|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||23.74 - 24.42|
|52-week range||19.11 - 51.64|
|Beta (5Y monthly)||0.26|
|PE ratio (TTM)||5.75|
|Forward dividend & yield||0.95 (3.94%)|
|Ex-dividend date||29 Sep 2020|
|1y target est||N/A|
(Bloomberg) -- Sharp Corp. will return to Japan’s Nikkei 225 Stock Average, replacing NTT Docomo Inc. and marking a comeback on Japan’s premier blue-chip index just four years after it was removed.The electronics maker will join the gauge on Dec. 2, Nikkei Inc. said in a statement. The unscheduled change comes as a result of Docomo’s impending delisting after parent Nippon Telegraph & Telephone Corp. succeeded in its $40 billion tender offer for the mobile unit.Sharp shares surged as much as 8.5% in early trading in Tokyo on Thursday, the most since August 6. The addition caps a turnaround led by Foxconn Technology Group, which took over Sharp in 2016 in a $3.5 billion deal following years of losses. Having expressed doubts about its ability to stay in business amid severe financing issues, it has been overhauled under Foxconn’s management and turned back to posting largely consistent profits.While the appointment is not completely out of the blue, with Sharp having been cited by analysts as a possible candidate, some were taken aback. Sharp’s market value of about $6 billion would place it in the bottom half of companies on Nikkei, with the stock closing Wednesday just 9% higher than when it was removed from the measure in 2016.“It’s a bit of a surprise, given that its profits had worsened for a bit and it wasn’t the leading candidate for the replacement,” said Tomoichiro Kubota, a senior market analyst at Matsui Securities Co. “There were other major electronic maker names with large market caps that have been left alone.”Those names included Rohm Co., Anritsu Corp. posited by SMBC Nikko Securities, while Daiwa had raised Murata Manufacturing Co., Aisin Seiki Co. and Shimadzu Corp. as potential replacements. Shares of all of these candidates fell by at least 2%.Surprise InclusionsThe addition itself wasn’t surprising, but the deemed par value of 50 yen was, analyst Travis Lundy wrote in a note on Smartkarma. That could help lift Sharp’s shares more than other companies added to the index.“I would expect this to trade strong, then trade stronger,” he wrote. “ I would not be surprised to see it move 50%.”Docomo’s delisting was effectively confirmed on Tuesday, with NTT having succeeded in taking its stake to more than 90%, allowing it to squeeze out the remaining shareholders.With funds tracking the index needing to buy and sell to reflect the changes, and speculators seeking to profit in advance, Nikkei 225 changes are reliable events for volatility. That’s especially been the case given the increasing purchases of exchange-traded funds tracking the Nikkei purchased by the Bank of Japan in order to support the market. Components are usually replaced with highly liquid names from the same sector -- but there have been several surprise inclusions in 2020, in what’s been an unexpectedly active year for the index, largely thanks to the unwinding of so-called parent-child listings of publicly traded units.Game maker Nexon Co. surged after being added to the gauge in October, a surprise replacement for convenience store chain FamilyMart Co. after it was bought out by Itochu Corp. Japan Exchange Group Inc. replaced Sony Financial Holdings earlier in the year, after Sony Corp. took full control of the unit, while SoftBank Group Corp.’s mobile unit SoftBank Corp. was another eye-catching addition when it joined in September as part of the index’s annual review.Iida Group Holdings will replace Docomo in the Nikkei 300, while UT Group will take its place in the Nikkei 500.(Updates with Sharp share reaction in third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
NTT Communications Corporation (NTT Com), the ICT solutions and international communications business within the NTT Group (TOKYO:9432), announced today that its recent cloud-based initiatives, including a cloud-native platform for emerging applications such as AI, IoT and 5G, received the Operator Award: Embracing Cloud from the Network Transformation Awards 20201 program at Layer1232 World Congress 2020.
(Bloomberg) -- Shares of game maker Nexon Co. soared to a record high in Tokyo after the surprise announcement that it will join Japan’s Nikkei 225 Stock Average, replacing retailer FamilyMart Co.Nexon, founded by South Korean billionaire Kim Jung-ju, closed 17% higher after touching its daily limit of a 20% gain earlier. The stock will be added to Japan’s blue-chip gauge on Oct. 29, Nikkei Inc. said.“It’s very much a surprise, one wouldn’t predict this pick at first,” said Keiichi Ito, chief quants analyst at SMBC Nikko Securities Inc. “If they chose based on liquidity, then there must have been other names to choose from.”Kim owns about 48% of Nexon’s stock through his holding company NXC Corp., according to data compiled by Bloomberg. Shares of the company, known for its Dungeon & Fighter and Maple Story games, have nearly doubled this year, helped by the stay-at-home theme amid the pandemic before the Nikkei nod.Stocks that had been cited by analysts as potential candidates to replace FamilyMart in the Nikkei 225 included Kakaku.com Inc., Zozo Inc., Square Enix Holdings Co., Lawson Inc., Skylark Holdings Co., Suntory Beverage & Food Ltd. and perennial pick Nintendo Co. Shares of Kakaku.com tumbled 7.8% Friday, Zozo slid 7.2%, Square Enix fell 3.9% and Skylark dropped 2.8%. Candidates for replacement often see share moves in the runup to the actual announcement.Passive funds tracking the Nikkei 225 will need to adjust their portfolios by the end of trading on Oct. 28. That means the Thursday evening announcement gave them just four trading sessions to buy the required 60 million shares of Nexon estimated by SMBC Nikko’s Ito, equivalent to 32 days worth of the stock’s average daily trading volume over the previous 25 days.Out and InThe acquisition of FamilyMart by trading house Itochu Corp. was approved at an extraordinary shareholder’s meeting Thursday, and the convenience-store operator will be delisted on Nov. 12.When a Nikkei 225 stock is delisted or removed, gauge operator Nikkei Inc. usually replaces it with a highly liquid name from the same sector. While Nintendo has both the liquidity and market representation, its large share price has often been seen as a drawback for the price-weighted measure.For market watchers keeping track of changes to the Nikkei, it’s been a fairly busy year for announcements. Japan Exchange Group Inc. joined the measure in July, replacing Sony Financial Holdings after Sony Corp. took full control of the unit. In September it was announced that SoftBank Corp. would be added and Nippon Kayaku Co. would be cut.The next potential vacancy may be created if Nippon Telegraph & Telephone Corp.’s $40 billion buyout plan for mobile carrier NTT Docomo Inc. succeeds. Rohm Co. and Murata Manufacturing have been named as potential replacements.(Updates with closing share price changes)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.