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Updated February 28th, 2024 at 08:55 IST

Nikkei holds below record high as momentum pauses

Market dynamics appeared mixed, with decliners slightly outnumbering advancers at 123 to 101, and one stock remaining unchanged.

Reported by: Business Desk
Nikkei
Nikkei | Image:Shutterstock
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Nikkei retracts from record high: The Nikkei share average in Japan retraced slightly on Wednesday from its recent all-time high, signalling a pause in the rapid rally that has seen gains of over 9 per cent in the last three weeks.

Mid-morning trade in Tokyo saw the Nikkei edging down by 0.19 per cent to 39,164.63, following its record intraday peak of 39,426.29 in the previous session and an all-time closing high of 39,239.52.

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Market dynamics appeared mixed, with decliners slightly outnumbering advancers at 123 to 101, and one stock remaining unchanged.

Heavyweights such as Uniqlo operator Fast Retailing and startup investor SoftBank Group collectively shed 71 index points, mirroring Nikkei's decline.

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In contrast, e-commerce and gaming firm DeNA surged over 24 per cent on the announcement of a new mobile game based on Pokemon trading cards.

The broader Topix slipped by 0.29 per cent, with a steeper decline of 0.43 per cent in value shares compared to a 0.16 per cent drop in growth stocks.

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The relative strength index (RSI), a gauge of momentum, hovered around 77 for the Nikkei on Wednesday, indicating an overbought market since February 13.

Maki Sawada, an equity strategist at Nomura Securities, noted, “Considering the speed of the rally, the market is showing signs of overheating, so some pullback is easy to imagine.”

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The market retreat lacked specific negative catalysts, suggesting any downside might be contained.

In sectoral performance, electric and gas led advancers with a 2.18 per cent rise, followed by paper and pulp with a 1.81 per cent gain.

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Conversely, rubber products sank 1.38 per cent, ranking as the poorest performer, while shippers lost 1.25 per cent.

(With Reuters Inputs)

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Published February 28th, 2024 at 08:55 IST

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