Graphic: Dashboard of Japanese stocks with a stake in Olympics' success
04/03/2020 07:30
March 4 (Reuters) - Shares of Japanese sports-wear makers
and advertising agencies have fallen this year, after a strong
rally in 2019, on worries that a worldwide coronavirus outbreak
could scupper the Summer Olympics in Tokyo.
Japan has been preparing for years and has invested some $12
billion in the Olympics, which start on July 24.
The government has said it will go ahead in preparing to
host the Olympics as planned even as the number of confirmed
coronavirus infections in Japan hit 1,000 on Wednesday.
urn:newsml:reuters.com:*:nL4N2AX02A
The government has asked schools to close, companies are
encouraging employees to work from home and sporting events have
been cancelled or postponed, heightening concerns the Games will
also be cancelled.
Crowds will be smaller and receptions have been scrapped at
the Tokyo 2020 torch lighting ceremony at the site of the
ancient Olympic Games in Greece next week. urn:newsml:reuters.com:*:nL8N2AW6HZ
Sports-wear maker Asics Corp 7936.T , which gained more
than 50% in the second half of 2019, has shed about 28% over the
past month.
Dentsu Group Inc 4324.T , Japan's largest advertising
agency and the main marketing agency for the Tokyo games and its
rival Hakuhodo DY Holdings Inc 2433.T have fallen about 22%
and 20%, respectively, in the past month.
Since the start of this year, analysts have slashed their
forward 12-month earnings estimates on Asics Corp and Dentsu
Group by 24% and 6%, respectively, according to Refinitiv data.
Shares of Japan's top two security firms also felt the
pinch, with Sohgo Security Services Ltd 2331.T down 12%, while
industry leader Secom Co Ltd 9735.T lost 11% in the past
month.
Consumer retail firms, transportation infrastructure, hotels
and restaurants were the hardest hit, the data showed.
Most of these firms have underperformed Japan's Nikkei
.N225 and broader Topix stock index .TOPX .
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Price performance of Olympics -involved stocks https://tmsnrt.rs/2TjhNVU
Japan Olympic stocks vs broader indexes https://tmsnrt.rs/2PLLlJr
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(Reporting by Patturaja Murugaboopathy and Gaurav Dogra in
Bengaluru
Editing by Vidya Ranganathan and Jacqueline Wong)
((patturaja.murugaboopathy@thomsonreuters.com;))