Monday, November 29, 1999

Nikkei lower after 5-day gains, support seen holding

News posted by

Japan's Nikkei average edged down 0.4 percent on Thursday after five days of gains, though support was expected to hold at the level of the benchmark's 25-day moving average.Though the Nikkei was managing to cling above 10,000, which market players say is a prerequisite for confirming a double bottom, further rises were likely to be hard going amid an apparent lack of investor interest, both from overseas investors and at home.Foreign investors sold a net 916.9 billion yen of Japanese stocks last week, more than the 75.2 billion yen they sold in the previous week and the biggest outflow in one week since March 2008, Finance Ministry data showed."The market's recovered to the 10,000 level but it's lacking energy. Still, there's a bit more of a willingness to take on risk, which should help keep the downside solid," said Hiroichi Nishi, general manager at the equity division of Nikko Cordial Securities."There seems to be a double bottom forming in a number of global stock markets, and within this general recovery pattern the market may well take a breather today."The benchmark Nikkei has risen for the past five trading days in its best such streak since six days from Nov. 30 last year. It gained 6.7 percent in the five days.On Thursday it shed 42.13 points to 10,025.02 after coming within a breath of breaking below 10,000, which market players cite as a key level and has been both support and resistance at different times over the past year.Support is expected to hold at 9,800, the level of the Nikkei's 25-day moving average, after the Nikkei closed above it on Tuesday for the first time in roughly two months.The next resistance levels will likely be around 10,200 and 10,300, near the Nikkei's 50-week moving average and its 200-day moving average.In addition, the 38.2 percent retracement from the Nikkei's April high of 11,408.17 and its June low of 9,378.23 comes in around 10,156.Market players said on Wednesday that long positions had accumulated in blue chip shares, leaving them vulnerable if upward momentum peters out."Wednesday's rises also were without much strength, since the cash market was pushed up mainly by short-covering in futures," said Yutaka Miura, senior technical analyst at Mizuho Securities.TAKEFUJI CLIMBSShares of consumer lender Takefuji Corp were up 7.7 percent at 307 yen after a company source said it has secured the 41.4 billion yen ($453.1 million) of funds it needed to redeem convertible bonds due on Saturday.The news confirmed a report in the Nikkei business daily.But shares of exporters fell after leading gains in the broader market the previous day, hurt by a flat Wall Street finish in the wake of mixed economic data underlining the uneven nature of the economic recovery.U.S. housing starts fell more than expected in May to a five-month low, casting a shadow over better-than-expected industrial production data for the same month and underscoring the uneven nature of the recovery, helping Wall Street end flat.Sony Corp slid 2.8 percent to 2,565 yen and Kyocera Corp slipped 2.6 percent to 8,020 yen. Honda Motor Co fell 0.8 percent to 2,737 yen.Shares of Fujitsu Ltd and Toshiba Corp gained after the Nikkei business daily said they had reached a deal to integrate their cell phone businesses, with Fujitsu to take a majority stake in a joint venture to be launched as early as October.Fujitsu rose 0.3 percent to 589 yen and Toshiba climbed 1 percent to 488 yen.(Editing by Edwina Gibbs)(For more business news on Reuters India click
News posted by
Click here to read more news from
Please follow our blogs



No comments:

Post a Comment