By Yuki Yamaguchi and Kazuyo Sawa - Nov 15, 2011 2:32 PM GMT+0700
Olympus Corp. (7733), the Japanese camera and endoscope maker that admitted last week to hiding losses, rose by the exchange-imposed limit for a second consecutive day as concern the company would be delisted eased.
The world’s biggest maker of endoscopes rose by the limit of 100 yen, or 19 percent, to 640 yen at the close of Tokyo trading. Buy bids outnumbered offers to sell by about 49 to 1 earlier today, preventing a trade in the morning session.
“If the company avoids delisting, it won’t become just a piece of paper,” Naoki Fujiwara, chief fund manager at Shinkin Asset Management Co., said by telephone today before the stock traded. Fujiwara doesn’t identify shares in his holdings.
Reuters, citing a source it didn’t identify, reported Oct. 13 that Japan’s securities watchdog may recommend a fine be imposed on Olympus for false financial reports, which could prevent delisting of the company’s shares.
Olympus ended a 10-day slump in Tokyo trading yesterday, rising 17 percent. As of today’s close, the stock has fallen 74 percent since Oct. 13, the day before Michael Woodford was dismissed as president after he objected to payments related to acquisitions the company later admitted were used to conceal losses. The Tokyo Stock Exchange has said 92-year-old Olympus may be delisted.
The exchange limits daily price fluctuations to 100 yen for shares priced less than 700 yen and 80 yen for shares priced less than 500 yen, 50 yen for shares less than 200 yen and 30 yen for those below 100 yen.
To contact the reporter on this story: Yuki Yamaguchi in Tokyo at yyamaguchi10@bloomberg.net
To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net
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