KI Holdings Co Ltd (6747) Soars 0.37% on Aug 30

August 30, 2017 - By Richard Conner

Shares of KI Holdings Co Ltd (TYO:6747) last traded at 273JPY, representing a move of 0.37%, or 1JPY per share, on volume of 15,000 shares. After opening the trading day at 272JPY, shares of KI Holdings Co Ltd traded in a close range. KI Holdings Co Ltd currently has a total float of 41.44 million shares and on average sees shares exchange hands each day. The stock now has a 52-week low of 265JPY and high of 370JPY.

TSE: Putting Asia To The Global Footprint

Japan comes next to the US when it comes to economic prowess, making it a powerful economy not just in Asia but in the whole world as well. Needless to say, it is surely bringing Asia to the global footprint.

What gives rise to the growing Japanese economy is its healthy corporate sector driven by excellent corporate governance. Without a thriving equity market, Japan will not be the massive success that it is today.

Japan’s Equity Market

The Tokyo Stock Exchange (TSE) is one of the most valuable stock exchanges in Asia. Aside from that, it also prides as one of the oldest stock exchanges in the region.

The Nikkei Stock Average or Nikkei 225 is the benchmark index that measures the most actively traded companies listed on the TSE. Its components are reviewed annually.

Unlike most popular indices in the world, the Nikkei Stock Average is a price-weighted index and not a capitalization weighted index. Its base value is 176.21 with the base date being May 1949.

Historical Feats

The TSE was founded in 1878, only to grow bigger in 1943 with the consolidation of five Japanese stock exchanges into it. It temporarily closed in 1945, primarily because of the World War II (WWII). However, the TSE had come back stronger, relaunching under a new Securities Exchange Act in Japan on May 16, 1949. KI Holdings Co Ltd is a stock traded on the Japan stock exchange.

The Nikkei Stock Average, on the other hand, was introduced on September 7, 1950. Since 2010, the index is refreshed every 15 seconds during regular sessions.

The 1989s is probably the decade that the TSE had enjoyed the most. Because of the fiscal stimuli administered by the government in an attempt to counter recession, share prices had tripled after the yen had surged roughly 50%. The TSE had then accounted for 60% of the world’s overall market capitalization.

The glory days, of course, did not last forever. Come 1990, the Nikkei Stock Average had declined more than 30%. During the onslaught of the 2008 Global Financial Crisis, the Nikkei Stock Average was trading below the 7,000 level in October 2008. This represents an 80% decline from its all-time high seen on December 29, 1989.

The dark days didn’t end there. On March 15, 2011, the Nikkei Stock Average had fallen to just 8,605.15 from almost 10,000 after an earthquake nearly destroyed all of Japan. The Nikkei Stock Average had posted its lowest year-end valuation of 8,455.35 since 1982. KI Holdings Co Ltd has relatively good liquidity.

Amid all the adversaries, the Japanese economy was still able to come through. In 2012, the Nikkei Stock Average had begun recouping. In 2013, it had finally touched the 10,000 mark. Two years later, the Nikkei Stock Average was able to double, hitting the 20,000 mark in 2015.

Because of the success of the Japanese equity market, many investors are looking into TSE stocks. Betting on the Asian economy has never been this interesting. Despite numerous setbacks in the past, the TSE has still managed to shaped the Japanese economy into becoming one of today’s most influential economies worldwide. Professional analysts might be interested how this will affect KI Holdings Co Ltd.

KI HOLDINGS CO., LTD. operates in three business divisions. The company has market cap of $11.35 billion. The Transportation Equipment-related segment makes and sells control equipment for railroad vehicles, display equipment, seats for aircraft passengers and vehicles, among others. It has a 7.43 P/E ratio. The Electrical Equipment-related segment is engaged in the manufacture, construction and sale of lighting fixtures for roads and sports facilities, traffic signal-related equipment and information devices for roads.