No­mura drops to pre-Abe­nomics level as Ja­pan's bro­kers slump

The Pak Banker - - MARKETS/SPORTS -

It's as if Abe­nomics never hap­pened for Ja­pan's big­gest bro­ker­ages. No­mura Hold­ings Inc. and Daiwa Se­cu­ri­ties Group Inc. fell for an eighth straight day in Tokyo as the deep­en­ing stock-mar­ket rout con­tin­ues to pum­mel in­vest­ment banks around the world.

No­mura is now trad­ing below its price when Shinzo Abe be­came prime min­is­ter in De­cem­ber 2012, ush­er­ing in an eco­nomic-stim­u­lus pol­icy that sparked a stock-mar­ket rally and a profit re­bound at Ja­pan's largest se­cu­ri­ties firm. The sell­off may be over­done be­cause bro­ker­ages re­main stronger than they were be­fore the Abe ad­min­is­tra­tion, ac­cord­ing to SBI Se­cu­ri­ties Co. an­a­lyst Nobuyuki Fujimoto.

"Their fun­da­men­tals haven't de­te­ri­o­rated that much," Fujimoto said by phone. "The tide will turn as over­seas in­vestors in par­tic­u­lar de­cide whether their prof­itabil­ity is re­ally worse than it was be­fore Abe­nomics."

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