Tsugami Corp. (6101) fell the most in almost five years in Tokyo trading after Citigroup Inc. said orders for the company’s machine tools are slowing since peaking in March.
Tsugami shares fell as much as 12 percent, the most since Aug. 17, 2007, to 479 yen on the Tokyo Stock Exchange. The stock fell 11 percent to 485 yen as of 10:39 a.m. The Topix Machinery Index declined 0.8 percent.
Demand has slowed from most customers, including suppliers to Apple Inc., Graeme McDonald, a Tokyo-based analyst at Citigroup Global Markets Japan Inc., wrote in a report dated yesterday. Orders for machinery tools used in the car industry have slowed, while demand for machines used to make hard-disk drive components have yet to materialize, McDonald wrote, citing Tsugami’s chief executive officer.
To contact the reporter on this story: Norie Kuboyama in Tokyo at email@example.com
To contact the editor responsible for this story: Teo Chian Wei at firstname.lastname@example.org