Tokyo Electric Shares Drop to 9-Month Low After Quake (Update3)
By Megumi Yamanaka and Yuji Okada
July 19 (Bloomberg) -- Shares of Tokyo Electric Power Co. dropped to a nine-month low on concern the company's nuclear facility in central Japan, the world's biggest, may be shut for a year after an earthquake caused radioactive leaks.
The stock fell 5.6 percent to close at 3,400 yen, the lowest since Nov. 6 last year. The shares earlier slumped 7.5 percent, the biggest intraday decline since Feb. 18, 2000, after the Nikkei said the shutdown will be prolonged by checks to ensure the plant will resist future earthquakes.
The tremor, which killed 10 people, has wiped $4.3 billion off the market value at Japan's largest utility this week. Investors sold the stock on concern the company will have to switch on oil, coal and gas-fired power plants at a time when prices for the fuels are at or near records. Tokyo Electric asked six other generators to make up any supply shortfalls.
``Profit is under extreme pressure, as the additional costs for buying electricity, oil and gas, as well as fixing plants, mount,'' Hirofumi Kawachi, an analyst at Mizuho Investors Securities Co. in Tokyo, said by phone today. ``The shares are expected to drop continuously, and at least until early next week we need to watch them closely.''