Tokyo stocks fell Wednesday morning, as market sentiment was dampened by sharp declines in shares of some pharmaceutical makers.
The 225-issue Nikkei Stock Average shed 109.51 points, or 0.53 percent, from Tuesday to 20,555.13. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 5.23 points, or 0.34 percent, to 1,551.86.
Decliners were also led by securities house, consumer credit, and electric power and gas issues.
While many market players took to the sidelines ahead of key events, two Japanese pharmaceutical companies’ announcement on Tuesday that they failed to create a new medicine for the treatment of chronic stroke exerted a negative impact on the market, brokers said.
Sumitomo Dainippon Pharma Co. and San Bio Co. said their study conducted in the United States aimed at producing the medicine was unsuccessful in meeting its “primary endpoint.”
“Retail investors grew cautious about bio-tech issues following the release of the disappointing results by the drugmakers,” said Hiroaki Kuramochi, chief market analyst at Saxo Bank Securities Ltd.
The announcement came as many investors have adopted a wait-and-see stance ahead of the release of the outcome of the U.S.Federal Reserve’s policy-setting meeting and trade negotiations between the United States and China.
Sumitomo Dainippon Pharma plunged 700 yen, or 18.6 percent, to a lower limit for the day of 3,065, while San Bio, listed on the Tokyo Stock Market’s Mothers for start-up companies, was untraded amid a glut of selling orders.
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