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The Shares of Sony and Panasonic Plunged to 30 Years’ Low
15-05-2012 18:21
The Shares of Sony and Panasonic Plunged to 30 Years’ Low
The Shares of Sony and Panasonic Plunged to 30 Years’ Low

 The shares of the Japanese companies Sony and Panasonic fell to the minimum since September 1980 during the Tokyo trading session on May 11, writes the daily newspaper Nikkei. The shares of Panasonic closed on May 10 at 579 yen ($7.14) per unit. During the session on May 11 the price fell to 565 yen, and the session resulted in the shares of the electronic goods producer falling by 1.55% to 570 yen. The shares of Sony were trading at 1,218 yen ($15.26) at session close on May 10. So during the trading session on May 11 the prices were declining to 1,115 yen and after the session close the shares lost 6.43% falling to 1,135 yen. The leading Japanese index Nikkei 225 lowered by 0.63%. The shares’ sales of the electric goods’ producers started after the reports about record losses. Thus Sony in 2011-2012 financial year (ended in March) lost 456.66 billion yen ($5.7 billion); this is the forth sequent year without profits. On May 11 Panasonic informed about the largest quarter loss in a 77-year history: in January – March of 2011 the company suffered losses of 438.4 billion yen or $5.5 billion while for the same period of the previous year the losses of the corporation was ten times as less. The results of 2011-2012 financial year appeared for Panasonic as follows – it lost 772.1 billion yen or $9.7 billion. The main losses of the companies Sony and Panasonic were evoked by high business competition on the market of TV-set producers; in this connection the sections of these two companies appeared unprofitable. In addition the negative influence on their financial results was exerted by a weaker yen, which added much in the second half of 2011 amid instability of the world economy. The investors started to purchase the Japanese currency as the asset which is less volatile as compared to the traditional dollar and the euro. Along with the yen’s demand upmove the yen rate increased and the Japanese exporters were forced to fix losses while exchanging the yield, received abroad into the national currency.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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