The Malaysian Insider

TOKYO, July 1 — Japan’s Nikkei stock average is likely to tread water today, and while eyes are on the much-awaited Bank of Japan tankan survey due out before the open, little impact is likely if the figures are mostly as expected.

Investors are likely to focus on Orix Corp, Japan’s biggest leasing firm and a major property investor, after three people familiar with the matter said the firm plans to raise about 100 billion yen (RM3.6 billion) through a public share offering.

The BOJ’s tankan, a quarterly survey of business sentiment, is expected to show confidence at big manufacturers rebounding from a record low three months ago, as they restock inventories on the view the worst of recession may have passed.

“As long as the tankan comes in mostly as expected, there is unlikely to be much of an impact on stocks,” said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ Securities.

“Most of the recent indicators have shown positive signs for manufacturing, and this has yet to be reflected in the tankan. Confidence in the future is likely to be reinforced.”

Oil prices tumbled yesterday after a drop in US consumer confidence data and this was likely to affect resource shares.

Analysts said they expected the benchmark Nikkei to move between 9,800 and 10,000, with support near 9,800 from the 25-day moving average and profit-taking emerging around 10,000. The Nikkei closed at 9,958.44 yesterday.

In a sign the market may start higher, Nikkei futures traded in Chicago edged up 0.6 per cent from their Osaka close of 9,930.

STOCKS TO WATCH

All Nippon Airways Co

ANA, Japan’s second-largest airline, plans to raise more than 150 billion yen in a public share offering, five sources familiar with the matter said.

Nomura Holdings Inc

Citigroup is in the final stage of talks to sell its Japanese trust bank, NikkoCiti Trust & Banking Corp, to a Nomura Holdings subsidiary for an estimated 20 billion yen, the Nikkei business daily said.

Shinsei Bank and Aozora Bank

Shinsei Bank and Aozora Bank, two loss-making lenders backed by U.S. investors, are likely to announce plans on Wednesday to merge by next year, two sources familiar with the matter said.

Kirin Holdings Co

Kirin will likely post a 13 per cent rise in pretax recurring profit to 54 billion yen for the first six months of the year, beating its projection for a 20 per cent decline thanks to strong sales of no-malt and alcohol-free beer, the Nikkei business daily reported today.

Nippon Telegraph and Telephone Corp

NTT Communications Corp, a unit of Japan’s largest phone company, said yesterday it would buy German IT security services provider Integralis for about €75 million (RM367 million) in cash.

Sony Corp and Seiko Epson Corp

Sony said on Tuesday it would acquire part of Seiko Epson’s loss-making small and medium-sized LCD operations by April 2010 for free, a move aimed at boosting its competitiveness as a display maker. — Reuters