Nomura Holdings Inc. (8604) climbed for a ninth day in Tokyo trading, extending the longest winning streak in more than six years as investors anticipate a stock rebound will bolster earnings at Japan’s biggest brokerage.
The stock rose 6.3 percent to 458 yen at the close, the highest since March 22, 2011. Tokyo-based Nomura has climbed 34 percent this month, and on Dec. 21 marked its longest rally since April 2006.
Japan’s benchmark Topix Index (TPX) is heading for its biggest monthly gain since February on optimism incoming Prime Minister Shinzo Abe will increase pressure on the central bank to do more to beat deflation. Brokerages have gained the most this month as the stock recovery boosts prospects investors will take more risks, said fund manager Mitsushige Akino.
“Investor sentiment has been rapidly improving, enabling them to buy not only stocks but also foreign equities and bonds,” said Akino, Tokyo-based chief fund officer at Ichiyoshi Asset Management Co., which oversees about 30 billion yen ($350 million). “That’s increasing business opportunities for Nomura and other securities firms.”
The Topix Securities and Commodity Futures Index has climbed 28 percent since Nov. 30, outpacing the Topix Index’s 7.2 percent gain. Daiwa Securities Group Inc. (8601), Japan’s second- biggest brokerage, rose 4.5 percent to 463 yen today and is up 27 percent this month.
Nomura has surged 65 percent since Chief Executive Officer Koji Nagai took the post on Aug. 1. Nagai has promised to cut $1 billion of costs and focus on Japan and elsewhere in Asia as the firm that bought part of bankrupt Lehman Brothers Holdings Inc. in 2008 scales back its overseas ambitions.
“Retail brokerage operations are the wellspring of Nomura’s business,” Akino said. “The market recovery coincides with the new CEO’s policy of focusing on the mother market and strengthening retail businesses.”
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