BUSINESS Tokyo stock closes higher on buying to secure dividends

BUSINESS

Tokyo stock closes higher on buying to secure dividends

Xinhua

15:30, September 28, 2020

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A pedestrian wearing a protective face mask walks past an electronic stock board outside a securities firm in Tokyo, Japan, on Thursday, Sept. 17, 2020. (Photo: CFP)

TOKYO, Sept. 28 (Xinhua) -- Tokyo stocks closed higher Monday as retailers and e-commerce-oriented issues buoyed the market, while investors also picked up issues to secure rights for dividend payments for the first half of the business year.

The 225-issue Nikkei Stock Average added 307.00 points, or 1.32 percent, from Friday to close at 23,511.62.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, gained 27.70 points, or 1.69 percent, to finish at 1,661.93.

Investor sentiment was upbeat from the get-go following Wall Street's positive lead late last week, local brokers said.

They added that investor appetite was also increased by the prospect of adding issues to portfolios that are set to go ex-dividend this week.

"Investors' moves to secure dividends as well as expectations that they would reinvest the profits helped lift the market," Makoto Sengoku, a market analyst at the Tokai Tokyo Research Institute, was quoted as saying.

Some investor consternation emerged, however, owing to uncertainties ahead, including the upcoming U.S. presidential debate and unilateral moves by certain countries that threaten to hamper the global semiconductor industry, market analysts here highlighted.

"But market players were also cautious about chasing higher ground, given some events that are difficult to evaluate such as the U.S. presidential debate on Tuesday ... " Sengoku added.

By the close of play, pulp and paper, iron and steel, and real estate-linked issues comprised those that gained the most.

Retailers and e-commerce oriented tech-linked issues that found traction included SoftBank Group advancing 2.9 percent and Uniqlo casual clothing chain operator Fast Retailing adding 1.0 percent by the close.

Chip-linked issues weighed however, with Advantest dropping 1.8 percent, while Tokyo Electron declined 1.7 percent.

Issues that rose outpaced those that fell by 1,892 to 251 on the First Section, while 34 ended the day unchanged.

On the main section on Monday, 1.462 billion shares changed hands, rising from Friday's volume of 1.274 billion shares.

The turnover on the first trading day of the week came to 2.708 trillion yen (25.707 billion U.S. dollars).

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