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Japan Hot Stocks-Honda, Seiyu, Paris Miki, Fujitsu, CIS, Sony

TOKYO, Jan 29 (Reuters) - The following stocks are on the move on Wednesday. **HONDA DOWN AFTER NSSB CUTS RATING TO UNDERPERFORM**

Honda Motor Co Ltd down 1.22 percent at 4,060 yen after Nikko Salomon Smith Barney (NSSB) cut its rating on Japan's number-two ranked automaker to "underperform/high risk" from "in-line/high risk" and lowered its target price to 4,200 yen from 5,800 yen.

In a note to clients, NSSB analyst Noriyuki Matsushima said he was increasingly concerned about a slowdown in near-term growth, including a potential deterioration in domestic earnings.

Honda, Japan's second-largest automaker is set to unveil earnings for October-December on Friday at 0600 GMT. 0200 GMT

**SEIYU DIVES AFTER UBSW CUTS RATING TO REDUCE**

Seiyu Ltd down 5.49 percent at 344 yen after UBS Warburg said on Wednesday that it had cut its investment rating on the supermarket chain to "Reduce 1" from "Neutral 2", while lowering its target price on the stock to 200 yen from 280 yen.

In a note to clients, UBS Warburg analyst Masahiro Matsuoka said he expects Seiyu to miss its targets for the current year to February due in part to very weak same-store sales during the end of December to New Year holiday period. 0110 GMT **PARIS MIKI DIVES AFTER SLASHING 2002/03 OUTLOOK**

Paris Miki Inc down 10.21 percent at 1,407 yen after the operator of chain stores selling eyeglass frames, lenses and other optical merchandise slashed its group net profit forecast by 66 percent to 1.97 billion yen ($16.6 million) for the year to March. The company cut its sales outlook by 11 percent to 72.94 billion yen, which would be a drop of 13.2 percent from 2001/02. 0045 GMT **FUJITSU TUMBLES AS SALES CONTINUE TO SLIDE**

Fujitsu Ltd down 4.2 percent at 342 yen. Japan's top computer maker posted a smaller net loss for the latest quarter versus a year earlier on Tuesday, but said sales slumped 3.9 percent in October-December and cut its full-year revenue outlook.

It was Fujitsu's seventh quarterly net loss in a row as IT spending remains weak.

Banking on a fourth-quarter rebound, Fujitsu left its full-year operating profit target of 100 billion yen ($843 million) unchanged, but analysts fear a sluggish market will put that out of reach. 0035 GMT **CIS SURGES ON SONY'S ACQUISITION PLANS**

CIS Corp, an information systems consulting firm, up 18.31 percent at 42,000 yen after electronics giant Sony Corp announced on Tuesday that it would acquire CIS via a share swap on May 1.

Under the deal, each CIS share will be exchanged for 8.74 shares in Sony, placing a 19 percent premium based on the closing share prices of Sony and CIS on Tuesday.

Sony down 0.21 percent at 4,840 yen, unmoved by a separate announcement also on Tuesday that it would abolish its Japanese audit system and set up a U.S.-style corporate governance model in a move aimed at improving corporate governance. 0023 GMT **JFE UP AFTER UNVEILING JOB, PRODUCTION CUTS**

JFE Holdings Inc up 3.33 percent at 1,550 yen after Japan's largest steelmaker said on Tuesday it would cut eight percent of its workforce, slash production and look to East Asia to help it overcome a sluggish domestic market and competition.

Under a three-year business plan from April 2003 JFE plans to trim domestic steel-making capacity by around 15 percent by March 2004 by closing two blast furnaces and 12 other production lines. It also plans to cut 8.6 percent of its workforce by March 2006. JFE said it expected its latest restructuring efforts to help boost group current profit to 250 billion yen ($1.1 billion) in the year to March 2006, 25 percent more than the original forecast made in December 2001. 0014 GMT **SHIMIZU DOWN AFTER SLASHING PROFIT OUTLOOK**

Shimizu Corp down 2.65 percent at 294 yen after the leading builder said on Tuesday it had revised down its group net profit forecast for the year through March by 60 percent due to one-off restructuring charges and reduced value of its assets.

Shimizu now sees group net profit at six billion yen ($50.6 million), down from an earlier estimate of 15 billion yen, after it was hit by 26.5 billion yen in group restructuring charges as well as losses on securities and other assets. 0004 GMT ($1=118.67 yen)