ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
Stocks

Trading of Toshiba stock balloons after capital increase

Passive traders grab shares after MSCI modifies index formula

TOKYO -- Turnover in Toshiba nearly tripled Thursday after the company's private placement of new shares spurred U.S. index compiler MSCI to more heavily weight the stock.

The Japanese conglomerate said Tuesday that it had carried out the 600 billion yen ($5.32 billion) transaction. On Thursday, Toshiba shares were provisionally given more weight in MSCI indexes to reflect the capital infusion.

Passive funds that track MSCI indexes appear to have added to their Toshiba allocations accordingly. Toshiba's trading volume shot up 160% to 258 million shares Thursday on the Tokyo Stock Exchange, with the stock closing 2.8% higher at 295 yen.

Japan's Rating and Investment Information upgraded the group's credit rating one notch to B+ from B, giving investors a reason to purchase. Toshiba is now trading at a 12% premium to the price of the newly issued shares.

(Nikkei)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more