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