|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||31.45 - 31.45|
|52-week range||21.23 - 37.75|
|Beta (5Y monthly)||1.27|
|PE ratio (TTM)||5.92|
|Forward dividend & yield||1.84 (5.85%)|
|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.
Japan's two biggest banks on Friday both reported first-half profits that tumbled by more than a third on a surge in costs from bad debts, highlighting the impact of the COVID-19 pandemic on the world's third-largest economy. Despite the downturn, top lender Mitsubishi UFJ Financial Group Inc (MUFG) raised its full-year forecast, while Sumitomo Mitsui Financial Group (SMFG) stuck to its outlook, suggesting some confidence about the months ahead. While Japan has been hit hard by the economic slowdown, it has been spared the worst of the health crisis, and many companies have been cushioned by government stimulus, which has helped rein in bankruptcies.
(Bloomberg) -- Japan’s three biggest banks are likely to stay on course toward achieving their annual profit goals as bad-loan costs remain in check, analysts said ahead of fiscal second-quarter results due this week.Massive government and central bank aid has spurred lending and kept companies afloat during the pandemic-fueled recession, reducing the need to ramp up provisions. Investment banking has been picking up, helping to alleviate the impact of rock-bottom interest rates that are squeezing lending profitability at home and abroad.“I expect their second-quarter results won’t be bad,” said Toyoki Sameshima, an analyst at SBI Securities Co. Thanks to the stimulus measures, “the emergence of bad-loan costs is being pushed down the road, and could even be delayed into the next fiscal year,” he said.Since the coronavirus emerged, the Bank of Japan introduced lending facilities for small businesses to cope with the crisis, while the government expanded loan guarantee and interest subsidy programs. That fueled a record rush to obtain cheap loans.Any moderation of bad-loan charges would mirror a trend seen around the world this earnings season, after banks from Singapore to the U.S. kept defaults at bay. Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. Mizuho Financial Group Inc. are expecting credit costs -- which include provisions as well as actual losses on soured loans -- to almost double to 1.1 trillion yen ($10.5 billion) in the year ending March, the highest combined amount in 11 years.Bankruptcies fell 9.4% in the six months through September to 3,858 cases, the fewest since 1990, according to Tokyo Shoko Research. Still, there is a risk that more businesses will fail once virus-related support measures expire.“It’s too early for domestic credit costs to materialize,” said Rie Nishihara, an analyst at JPMorgan Chase & Co.Mizuho’s credit costs are likely to be lower than MUFG’s and Sumitomo Mitsui’s because of its smaller overseas exposure, according to Bloomberg Intelligence analysts Shin Tamura and Francis Chan.Mizuho is set to post earnings for the three months ended Sept. 30 on Thursday, followed by larger rivals MUFG and Sumitomo Mitsui on Friday.The banking groups were also helped last quarter by a strong performance at their brokerage arms. Each of their securities units reported sharp year-on-year profit growth, thanks to a pickup in activity by corporate and retail customers.Another likely bright spot is profits from unloading stocks and bonds. Nishihara said the banks’ selling of strategic equity holdings probably picked up last quarter, as Japanese stocks advanced. MUFG and Sumitomo Mitsui probably booked large gains on sales of bonds in their investment portfolios, Tamura and Chan wrote.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.