Nihon Seimitsu Co., Ltd. (7771) Plunges -0.61% on Oct 13

October 13, 2017 - By Ellis Scott

Shares of Nihon Seimitsu Co., Ltd. (TYO:7771) last traded at 164, representing a move of -0.61%, or -1 per share, on volume of 8,000 shares. After opening the trading day at 165, shares of Nihon Seimitsu Co., Ltd. traded in a close range. Nihon Seimitsu Co., Ltd. currently has a total float of 18.56M shares and on average sees shares exchange hands each day. The stock now has a 52-week low of 144 and high of 250.

The Success Of Post-War Japanese Economy

Japan has a rich history. Much can be taken away from it, particularly the World War II (WWII). It is this exact history that has shaped the Japanese economy into the world leader that it is now.

Before and During the War

The main stock exchange in Japan is the Tokyo Stock Exchange (TSE). Founded in 1878, it is one of Asia’s oldest stock exchanges. In the wake of the WWII in 1943, five Japanese stock exchanges were merged into the TSE, creating a bigger stock exchange that consolidated the whole Japanese corporate sector.

While the TSE was able to withstand the pressure brought by the challenging period in Japan’s history for quite some time, it eventually had to close in 1945.

Post-War

Post-war Japan is interesting because this is the time that the Japanese economy really boomed.

On May 16, 1949, the TSE had reopened under the new Securities Exchange Act. The Nikkei 225, the benchmark index weighing the top 225 companies listed on the TSE, was launched on September 7, 1950.

Every September, the components of the Nikkei 225 are reviewed. The changes made during the review date take effect every October. The Nikkei 225 is a price-weighted index, which means that companies are tracked based on share prices instead of market capitalization.

The Nikkei 225 had one of its longest bull period in the 1980s, thanks to the efforts of the government to overcome recession. It was during this decade that stock prices rallied three times as much. As a result, the Nikkei 225 that time had represented 60% of the total market valuation worldwide. Nihon Seimitsu Co., Ltd. is a stock traded on the Japan stock exchange.

During the 2008 Global Financial Crisis, Japan was largely affected. The Nikkei 225 was trading 80% below its all-time peak of 38,957.44, which was recorded on December 29, 1989. It had hit a level below 7,000 in October 2008.

In 2011, an earthquake with a strong magnitude had literally and figuratively shaken Japan. On March 15, 2011, the Nikkei 225 had dropped 10% to 8,605.15. It had hit another low of 8,160.01 on November 25, 2011 shortly after the 2008 Global Financial Crisis.

The year 2011 is surely one of the Japanese economy’s toughest years, with the Nikkei 225 having fallen 17% overall. That time, the lowest year-end value of 8,455.35 in almost three decades had been posted. This comes close to the year-end value of 8,016.70 seen in 1982.

Between 2012 and 2015, however, the Nikkei 225 was once again able to come through. Thanks to the financial stimuli from the Bank of Japan (BOJ), the Nikkei 225 had gained 15% during this period. Nihon Seimitsu Co., Ltd. has relatively good liquidity.

In 2013, the Nikkei 225 had reached the 10,000 mark. In 2015, it had already hit the 20,000 mark. In just two years, the Nikkei 225 was able to surge about 10,000 points.

Amid the difficulties through the years, the TSE has proven itself capable of overcoming any challenges. Backed by its rich history, the Japanese economy is surely worth considering investing in. Professional analysts might be interested how this will affect Nihon Seimitsu Co., Ltd..

More notable recent Nihon Seimitsu Co., Ltd. (TYO:7771) news were published by: Reuters.com which released: “Nihon Seimitsu completes establishment of Cambodia-based watch component related plant” on September 22, 2017, also Reuters.com with their article: “Nihon Seimitsu to set up overseas unit in Cambodia” published on May 13, 2016, Reuters.com published: “Nihon Seimitsu signs supply agreement” on April 14, 2016. More interesting news about Nihon Seimitsu Co., Ltd. (TYO:7771) were released by: Reuters.com and their article: “Nihon Seimitsu unit to set up JV” published on January 08, 2016 as well as Reuters.com‘s news article titled: “Nihon Seimitsu raises consolidated mid-year revenue outlook for FY 2016” with publication date: October 29, 2015.

Nihon Seimitsu Co., Ltd. is a Japan firm mainly engaged in the manufacture and sale of watch-related products and glasses frames. The company has market cap of $3.08 billion. The Firm operates in three business divisions. It currently has negative earnings. The Watch-related segment is engaged in the manufacture, processing and sale of watch-related products.

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