Panasonic Stock Falls To 37-Year Low
TOKYO (Kyodo) -- Panasonic Corp.'s stock dropped to its lowest level in about 37 years at one point Thursday on selling triggered by the export-sapping appreciation of the yen and an overnight fall in U.S. shares.
The electronics maker ended the day unchanged at 478 yen on the Tokyo Stock Exchange after going as low as 470 yen in the morning, a level unseen since Oct. 6, 1975, when it touched 468 yen.
"The level of Panasonic's profitability isn't as high as before," a stock analyst said. "Uncertainty has grown over the company's earnings amid a worsening business environment."
Meanwhile, Sharp Corp. hit a fresh year-to-date low of 143 yen before ending at 146 yen, down 7 yen from Wednesday.
Investors have pointed out that Sharp has not set out clear plans for recovery. Sharp is in talks with Hon Hai Precision Industry Co. to revise the terms of the Taiwanese company's planned investment in Sharp to improve the loss-ridden Japanese manufacturer's financial profile.
Earlier this week, Deutsche Securities Inc. said it will maintain a "sell" rating on Sharp.
The latest two-notch downgrading by Standard & Poor's Rating Services of Spanish debt to BBB-minus also reignited concerns over the outlook for global economic growth, apparently a selling factor for the two Japanese stocks.