Tokyo, Jul 5: Share prices in Tokyo already tumbled 1.3 percent as ugly Japanese gross domestic product data in the June quarter triggered selling.
The Nikkci-225 Index on the Tokyo Stock Exchange fell 133.S4 points to close at 10516.79.
The Topix of all issues on the stock exchange decreased 991 points to 1080.83.
Investors sold shares across the board from the outset as the cabinet office said Japan’s GDP fell 0.8 per cent in the three months to June from the previous quarter, equivalent to an annualized 3.2 percent contraction.
Market players, particularly foreign investors, reacted negatively to the GDP data.
The excerpt has been derived from the market report of the Tokyo Stock Exchange on October 5, 200X.
Meanings of difficult words
|Ugly||ominous, bad, poor|
|Triggered||initiated, prompted, caused|
|Nikkei-225 index||A benchmark / standard named Nikkei to measure the average performance of the Tokyo Stock Exchange. The so called index includes 225 blue chip companies listed on the exchange as representatives.|
|Topix||It is the index used by the Tokyo Stock Exchange that includes all companies listed on the exchange as against Nikkei that includes only 225 companies.|
|Market players||brokers, speculators, investors|
|Across the board||involving shares of most companies|
Tendency of the market
Tendency shows downward movement of shares prices on the Tokyo Stock Exchange.
The critical factor forming the tempo of the exchange is the slowdown of theJapan’s economy as shown by 0.8 per cent fall of GDP.
Statistics of performance at a glance
The report draws dismal picture of the Tokyo Stock Exchange that witnessed falling prices of shares across the board from the selling pressure prompted by the report that the GDP of theJapan’s economy has shrunk 0.8 percent in the second quarter the year ending June, 200X. The fall of the GDP, has pushed the share prices down.
According to the Cabinet Office, Government of Japan, the GDP of Japan squeezed 0.8 per cent during April – June over the first quarter of the year from January to March. The quarterly figure, if converted annual rate stands at 3.2 per cent. This state of affair prompted the investors especially the foreigners, who reacted negatively to squeeze of the economy, to sell their share holdings for fear of decline in the resultant corporate earning and further fall n the share prices.
The stock exchange shed 133.54 points in terms of Nnikkei-225 index which opened at 10650.33 and closed at 10516.79 points. On the other hand, Topix, consisting of all companies shares dropped 9.91 points. It opened at 1090.74 and closed at 1080.3. In term of percentage, Nikkei lost 1.3 percent and Topix 09 percent.
The report discloses the fact at the news of GDP squeeze pressed the investors to sell their shares right from the beginning of the day’s operations.
The fall of Japan’s GDP by 0.8 percent during April – June sparked off selling resulting is the drop of NIKKEI-225 index by 133.54 points or 1.3 percent and Topix index by 991 or 0.9 per cent.
The Stock exchange may continue to fall in the coming days till the share prices are set at their natural levels in the aftermath of the low GDP of Japan.