KAWATA MFG. CO., LTD. (6292) Soars 3.23% on Sep 7

September 7, 2017 - By Michael Collier

Shares of KAWATA MFG. CO., LTD. (TYO:6292) last traded at 671JPY, representing a move of 3.23%, or 21JPY per share, on volume of 14,800 shares. After opening the trading day at 690JPY, shares of KAWATA MFG. CO., LTD. traded in a close range. KAWATA MFG. CO., LTD. currently has a total float of 7.08M shares and on average sees shares exchange hands each day. The stock now has a 52-week low of 446JPY and high of 690JPY.

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. KAWATA MFG. 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. KAWATA MFG. 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 KAWATA MFG. CO., LTD..

More news for KAWATA MFG. CO., LTD. (TYO:6292) were recently published by: Plasticsnews.com, which released: “Asian firms look to ride wave of investment in Mexico” on March 16, 2016. Businesswire.com‘s article titled: “HULFT Pte. Ltd. Has Signed a HULFT Implementation Partner Agreement with …” and published on January 30, 2017 is yet another important article.

KAWATA MFG.CO., LTD. is primarily engaged in manufacturing plastic products making machinery, and providing related system engineering service. The company has market cap of $4.84 billion. The Firm provides transport machines , transport, weighing and mixing machines (Auto Colors), high-speed mixers (Super Mixers), driers (Challengers), large drying devices, material storage systems, automatic material supply systems, material weighing and mixing systems, mold temperature controllers (Just Thermo), mold cooling devices (Chillers), plastics crushers, and streamed machines and automated systems for each process of environmental preservation. It has a 31.02 P/E ratio. The Firm operates in Japan, East Asia, Southeast Asia and North America divisions.