TOKYO, March 20 (Reuters) - The following stocks are on the move on Thursday:
**MOST DEFENCE STOCKS HIT BY PROFIT-GRAB ON WAR START**
Koken Ltd , a maker of masks that protect against chemical and biological weapons, down 7.18 percent at 905 yen on continued profit-taking after the widely anticipated U.S.-led military campaign on Iraq began during the midday break.
Shares of Koken hit a two-month high of 1,140 yen on Monday.
Gas mask maker Shigematsu Works Co Ltd down 6.35 percent or 43 yen at 590 yen, and Hosoya Fireworks Co Ltd , a manufacturer of flare bombs and smoke candles, down 13.64 percent or 60 yen at 380 yen.
In contrast, Mitsubishi Heavy Industries Ltd , which relies on Japan's Defence Agency for around 14 percent of its sales, up 2.01 percent at 305 yen. Mitsubishi makes missiles used in the U.S.'s Patriot ground-to-air-missile systems. 0455 GMT **PAPER UP ON OIL PRICE DROP, UNLIKELY TO REPEAT GULF WAR RUN**
Oji Paper Co Ltd up 3.53 percent at 469 yen on a slide in the price of oil, which lowers the paper industry's raw materials costs. Front-month U.S. crude oil futures hit three-month lows on Thursday after the U.S. began bombing Iraq.
But analysts said the pulp and paper sector , which was up 3.52 percent and the market's second-best performer, was unlikely to repeat its spectacular performance during the first month of a U.S.-led campaign in 1991 when it rallied 34 percent.
"A crude price fall is welcome news for papermakers but that would be just one negative factor out of the way. There is the risk of a fall in the yen," said UBS Warburg analyst Takaaki Muramatsu. "I don't think the situation is the same in this war."
A softer yen boosts import costs. Muramatsu said high prices for recycled paper and an increase in imported paper were also risk factors more prevalent now than they were more than ten years ago during the Gulf War. 0440 GMT **NINTENDO UNDERPERFORMS AFTER DEUTSCHE CUTS RATING**
Nintendo Co Ltd up 0.21 percent at 9,710, underperforming a two percent rise in the Nikkei average after Deutsche Securities cut its rating on the video game maker to "hold" from "buy."
In a note to clients, Deutsche analyst Takashi Oya said that strong price competition from Sony Corp and Microsoft Corp's rival game consoles could hit shipments of Nintendo's GameCube. 0415 GMT **KONAMI ASK-ONLY ON LOSS WARNING**
Konami Corp untraded with a glut of sell orders at 1,925 yen, 85 yen or 4.3 percent below Wednesday's close after the video game publisher said during the midday break that it expects a group operating loss of 21.5 billion yen ($179 million) in 2002/03.
Before the announcement, shares of Konami ended the morning session up 6.72 percent at 2,145 yen.
Konami said a 46.5 billion yen unrealised loss on its gym operations would lead to the operating loss. Previously, Konami forecast an operating profit of 25 billion yen. 0357 GMT **YAMATO TRANSPORT UP ON REPORT TO CUT PARCEL RATES**
Yamato Transport Co Ltd up 4.75 percent at 1,410 yen after the Nihon Keizai Shimbun said Japan's top parcel deliverer would cut its postal rates from April 1. The stock bounced back from a 27-month low of 1,295 hit in the previous session.
Rival Japan Post, the public postal corporation, starts its operations also on April 1.
Yamato's cuts will result in lower prices than regular postal rates for nearly all parcels weighing one kilogram or less, the paper said. 0231 GMT **NIKKO CORDIAL UP AFTER CSFB UPGRADES TO OUTPERFORM**
Nikko Cordial Corp up 4.26 percent at 367 yen after Credit Suisse First Boston (CSFB) upgraded its rating on the brokerage to "outperform" from "neutral". It set a price target of 400 yen, which was down from its previous target of 430.
CSFB said Nikko's share price had recently dropped sharply after a penalty was slapped on its investment banking joint venture by regulators.
Nomura Holdings Inc , Japan's top brokerage, up 3.7 percent at 1,347 yen, helping lift the brokerage sector subindex by 3.79 percent. 0200 GMT **MOSHI MOSHI HOTLINE SOARS AFTER UPPING FORECAST**
Moshi Moshi Hotline Inc up 9.45 percent at 4,750 yen after the country's third-biggest telemarketing company on Wednesday raised its pretax profit forecast for the year ending March 31 to 3.42 billion yen ($28.44 million) from a previous forecast of 2.36 billion. 0147 GMT **AIRLINES UP -- IATA PRICE RISE**
Japan Airlines System Corp , Japan's top airline, up 2.49 percent at 247 yen after industry sources said the International Air Transport Association (IATA) had decided to raise regular fares on international flights by three percent due to high fuel costs.
All Nippon Airways Co Ltd up 2.16 percent at 236.
Japan Airlines and ANA plan to file for permission for the fare increase from the Transport Ministry. 0128 GMT **TOYO CONSTRUCTION TUMBLES AFTER CUTTING F'CAST**
Toyo Construction down 16.67 percent at 45 yen and the biggest percentage loser on the first section after the contractor slashed its group net profit forecast for the year ending March 31 by 56 percent to 700 million yen ($5.82 million). 0119 GMT **SONY , EXPORTERS UP AS YEN WEAKENS**
Sony Corp up 2.3 percent at 4,450 yen, leading a rise in blue chip exporters after the dollar rose to a one-month high of 120.65 yen overnight on hopes for a swift and decisive war in Iraq.
Second-ranked automaker Honda Motor Co Ltd up 3.16 percent at 4,240 yen, while Fuji Photo Film Co Ltd up 2.49 percent at 3,710. 0100 GMT **JAFCO SLIDES ON WIDER LOSS FORECAST FOR 2002/03**
JAFCO Co Ltd down 4.93 percent at 4,440 yen after Japan's largest venture capital firm said on Wednesday it expects a group net loss of 7.00 billion yen ($58.2 million) for the year to March 31, nearly double its earlier estimate of 3.7 billion yen.
The company also cut its sales outlook to 24.5 billion yen from 26.00 billion yen. 0053 GMT **ISHIKAWAJIMA DOWN AFTER SAYS TO HALVE DIVIDEND**
Ishikawajima-Harima Heavy Industries Co Ltd down 1.75 percent at 112 yen after the heavy machinery maker said on Wednesday that it planned to slash its dividend to 1.5 yen per share in the current year to March 31.
The company paid a 3.0 yen dividend in 2002/03. 0043 GMT **TEIKOKU OIL , AOC DOWN ON OIL PRICE FALL**
Teikoku Oil Co Ltd, Japan's second-largest oil producer, down 1.92 percent at 408 yen after oil closed below $30 for the first time in three months in the New York market on Wednesday as dealers braced for an impending U.S.-led invasion of Iraq.
Number-one ranked AOC Holdings Inc down 4.01 percent at 550 yen, while major distributor Showa Shell Sekiyu KK jumped 6.22 percent to 751 yen. Distributors are hurt if they cannot pass on higher crude prices to customers. 0015 GMT ($1=120.26 yen)