Shares of Mitsui OSK Lines Ltd, Japan's second-largest shipping company, tumbled amid concern the company's profit outlook does not justify its stock price. Shares of Mitsui OSK dropped 6.7 per cent to close at 1,338 yen in Tokyo. The Nikkei 225 Stock Average fell 2.9 per cent after a plunge in Chinese shares sparked a global sell-off.
Mitsui OSK and Kawasaki Kisen Kaisha Ltd, Japan's third-largest shipper, raised their profit forecasts for the current fiscal year on Feb 8, prompting their shares to rise as much as 20 per cent in less than three weeks. By contrast, the Nikkei Average rose 4.8 per cent during the same period.
'The earnings outlook for Mitsui OSK does not justify its share price,' said Osuke Itazaki, an analyst in Tokyo at Credit Suisse Group, who rates both companies 'neutral.' He expects Mitsui OSK shares to drop to 1,260 yen over the next 12 months.
Mitsui OSK and Kawasaki Kisen Kaisha Ltd, Japan's third-largest shipper, raised their profit forecasts for the current fiscal year on Feb 8, prompting their shares to rise as much as 20 per cent in less than three weeks. By contrast, the Nikkei Average rose 4.8 per cent during the same period.
'The earnings outlook for Mitsui OSK does not justify its share price,' said Osuke Itazaki, an analyst in Tokyo at Credit Suisse Group, who rates both companies 'neutral.' He expects Mitsui OSK shares to drop to 1,260 yen over the next 12 months.