Nisshin Steel surges on report of Nippon Steel to invest
Saturday, 18 Jul 2009
Bloomberg reported that Nisshin Steel Co climbed the most in 5 weeks in Tokyo trading after a report Nippon Steel Corporation plans to raise its stake in the smaller producer.
As per report, shares of Nisshin Steel jumped 5.7% to close at JPY 186 on the Tokyo Stock Exchange, the largest increase since June 10th 2009. The stock had the eighth biggest percentage gain among 1,654 companies on the MSCI World Index.
Nippon Steel will raise its stake in Nisshin Steel to as much as 20% from 10%. No decision on increasing the stake has been reached, Nippon Steel, which added 3.4% to JPY 337.
Mr Yuji Matsumoto and Mr Kentaro Maekawa analysts at Nomura Holdings Inc said that "A stronger alliance between Nisshin Steel and Nippon Steel would have a positive profit impact on both companies with 'buy' ratings on both companies. Nisshin Steel will have a bigger impact as its stainless steel sales occupy a higher percentage of total sales."
