Wednesday, October 9, 2013
SoftBank Loses Y500bn In Market Cap On Rating Cut
TOKYO (NQN)--Shares in SoftBank Corp. (9984) continued lower Wednesday, down 420 yen, or 5.7%, to close the day at 7,000 yen. The stock's market capitalization dropped about 500 billion yen to about 8.4 trillion yen at the market close, putting it once again below that of Mitsubishi UFJ Financial Group Inc. (8306).
The mobile carrier dropped to third place in overall market value rankings among stocks listed on the first section of the Tokyo Stock Exchange. Five trading days earlier, the stock had gained the No. 2 position, with Toyota Motor Corp. (7203) at No. 1.
SoftBank's stock had more than doubled since the beginning of the year because of the company's acquisition of Sprint Nextel Corp., the third-largest U.S. mobile carrier. The firm's solid smartphone business also helped boost its stock. On Oct. 3, SoftBank's market capitalization surpassed that of MUFG, knocking it from the No. 2 spot for the first time since the megabank's predecessor Mitsubishi Tokyo Financial Group Inc. debuted on the market on April 2, 2001.
In a report released Tuesday, Citigroup Global Markets Japan Inc. said SoftBank's domestic mobile business is growing at a slowed pace, and cut its investment rating on the carrier a notch to the middle rank of "neutral" on its three-tier scale. This prompted selling of the stock on early Wednesday morning.
SoftBank briefly dropped 490 yen, or 6.6%, to 6,930 yen, falling below 7,000 yen for the first time in five trading days.