Tokyo stocks down on profit-taking

AFP

Tokyo, Jan 19: Share prices in Tokyo closed 0.3 per cent lower on Tuesday on profit-taking following a three-day rally, brokers said. "Profit-taking dampened the market today after three consecutive days of gain," said Yasuo Ueki of Nikko Securities. "Since there is no clear direction to trade at this moment, sensitive trading is likely to continue," Ueki said. The benchmark Nikkei-225 index on the Tokyo Stock Exchange fell 34.62 points to finish at 13,770.44. The Topix index of all issues on the first section was down 0.99 points at 1,074.80. Volume was moderate with an estimated 308 million shares changing hands compared with 334.7 million shares the previous day. Stocks opened higher as the dollar held comfortably above 114 yen, but a lack of fresh incentives and profit-taking pushed them down by midday after a three-day winning streak, brokers said.

Most investors were skeptical about the Nikkei's sustained rises above the psychologically important 14,000-point level, brokers said. "There will be moreunwinding of cross-shareholdings before the March book-closing," said Tsutomu Ono, director and research head of Universal Securities Research Institute.

"Investors are avoiding issues which are expected to be hit by such selling and buying is focused on individual issues backed by positive incentives," Ono said.

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