Tokyo’s stock market saw a day of mixed fortunes for several key players, with security firm ALSOK enjoying a significant boost from a broker upgrade. In contrast, major firms including Nissan and Dai-ichi Kogyo Seiyaku faced heavy selling pressure following announcements of large-scale share sales. Meanwhile, other companies made strategic moves in acquisitions and tech adoption, drawing varied reactions from investors.
ALSOK Shares Rally on Broker Upgrade
Shares in security services provider ALSOK (2331) saw a notable rebound, closing the day up 1.3% at $1,136.5, an increase of $14.5. The surge was largely attributed to a positive reassessment by SMBC Nikko Securities, which upgraded its investment rating for the company from ‘Neutral’ to ‘Outperform’.
In a related move, the securities firm also hiked its price target for ALSOK from $1,200 to $1,400. Analysts at SMBC Nikko noted that they anticipate the company to implement price revisions for its security services within the fiscal year ending March 2027. This, they argue, will boost growth expectations and help close the valuation gap with its main competitor, Secom (9735). The broader market consensus from six analysts remains ‘cautiously optimistic’, with an average target price of $1,208.
Strategic Developments Cause Ripples
Several companies announced strategic initiatives, influencing their stock performance. Port Inc. (7047) experienced a significant rally for the third consecutive day, hitting a new year-to-date high with a 0.4% rise to $2,337. The upward momentum followed the company’s announcement that it will be entering the stablecoin market support sector. Port Inc. aims to gain a first-mover advantage in what it predicts will be a rapidly expanding market in Japan, planning to generate revenue through both performance-based fees and revenue-sharing models with stablecoin issuers.
In acquisitions, Sumida Corporation (6817) saw little share price movement, closing up 0.3% at $1,059. The company announced that its European subsidiary is set to acquire an 80% stake in Schmidbauer, a German firm specialising in the development and manufacture of large coils. Sumida highlighted Schmidbauer’s significant growth potential in high-power applications, including renewable energy and defence.
Elsewhere, MISUMI Group Inc. (9962) remained firm, despite a slight dip of 0.4% to finish at $2,315. The company revealed it is launching a generative AI-powered chatbot on its e-commerce platform. The new system is designed to handle complex technical and customer service enquiries for its catalogue of over 30 million products, and is expected to slash customer waiting times by an average of 97-98%.
Stock Offerings and Stake Sales Pressure Shares
On the downside, several major stocks came under significant pressure due to concerns over share dilution and large stake sales.
Dai-ichi Kogyo Seiyaku (4461) was the second-biggest faller on the Tokyo Stock Exchange Prime Market, plummeting 10.1% to $5,270. The sharp drop came after the company announced its intention to dispose of one million treasury shares and support a secondary offering of over 337,000 shares by existing stockholders. The news triggered a wave of selling from investors concerned about the resulting dilution. The company plans to raise approximately $57.18 million to fund capacity expansion for its lithium-ion battery materials production and to repay long-term debt.
Similarly, Nissan Motor (7201) shares skidded, falling 6.3% to $340.3 and ranking as the fifth-largest decliner. The sell-off was sparked by a Reuters report that a pension trust for Mercedes-Benz is selling its 3.8% stake in the Japanese carmaker. The news prompted widespread concern among investors about the impact of such a large volume of shares entering the market.
Meanwhile, Hoosiers Holdings (3284) experienced a volatile session, ending with a modest gain of 0.9% at $1,287. The company is currently in the price-determination period for a public offering of new shares and the disposal of treasury stock, leading to nervous trading patterns.