Nomura Holdings (ADR NMR): Foreign Investors Fueling the Nikkei

Sep.29.05 | About: Nomura Holdings, (NMR)

Nomura Holdings, Inc. (NYSE:NMR), Japan's largest securities company has received approximately 30% more orders per day in the latter half of this month compared to the first half, since launching a global campaign on September 12th to attract foreign investors to Japanese stocks.

Nomura's 30% increase in stock purchase orders by foreign investors can largely be credited to the efforts of Nomura's group of strategists, economists and analysts that have been hosting seminars and meetings in Tokyo and other major cities in the U.S., Europe, and Asia, so far inviting nearly 1,600 institutional investors and a number of which have been new clients.

Hiromasa Yamazaki, head of Global Equity at Nomura, told Reuters in an interview that not only are foreign investors becoming quite bullish on the prospects of Japanese stocks, but Nomura itself sees the Nikkei index doubling over the next 10 years. As of market close on Wednesday (28th) the Nikkei was at 13,435.91, up almost 1,000 points since September 1st, and up nearly 2,000 points (17%) since the beginning of the year.

Foreign stock purchases for the year-to-date are up over 19% from the same period last year. The most foreign stock purchases ever were recorded for the month of August, totaling 6.58 trillion yen or $58.11 billion USD. Reasons for a continued bullish outlook include Nomura's strong increase in purchase orders, P.M. Koizumi's landslide victory and mandate to enact reforms, and sustained gains in the Nikkei beyond the 13,000 point psychological barrier. Nomura Holding's ADR is up $2.05 since it began its campaign on the 12th to $15.80 (as of 09-28 closing price).

A Reuters article covering Nomura's recent activity can be read here.