29 Jun 2009
June 29 (Bloomberg) -- Asian stocks fell on concern equity sales by Daiwa Securities Group Inc. and Mizuho Financial Group Inc. will dilute shareholder value.Daiwa, Japan's No. 2 brokerage, slumped 12 percent after saying it plans to raise about 240 billion yen ($2.5 billion) in a share sale. Mizuho, Japan's third-largest bank by market value, lost 4.6 percent after people familiar with the matter said it may start selling shares as early as this week. JTEKT Corp., a parts affiliate of Toyota Motor Corp., rose 1.6 percent after Japanese industrial production rose for a third month. LG Display Co., the world's second-largest maker of liquid-crystal displays, rose 1.7 percent in Seoul after saying demand from customers was higher than expected.
The MSCI Asia Pacific Index fell 0.5 percent to 103.10 as of 1:30 p.m. in Tokyo, with about five shares falling for every three that gained. The gauge has risen 46 percent from a five- year low reached in March.
"Investors are skeptical Daiwa's share sale will offset the negative impact of dilution and boost the brokerage's earnings under these difficult conditions," said Masaru Hamasaki, a Tokyo-based senior strategist at Toyota Asset Management Co., which oversees $15 billion. "Revenue from broking remains stagnant, demand for merger and acquisition won't recover anytime soon and investment banking isn't as profitable as before."
