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Last Updated: Thursday, 8 December 2005, 09:53 GMT
Faulty share sale hits Japan firm
A Japanese man passing a board showing share prices
J-Com's market debut was less smooth than hoped
Shares in a Japanese recruitment firm fell sharply after their debut on the Tokyo stock market when a stockbroker mistakenly tried to sell some stock.

J-Com shares dropped below their issue price after an unidentified broking firm tried to sell 600,000 shares.

Reuters said Mizuho Securities later admitted to a processing error and said it was discussing potential solutions with the Tokyo Stock Exchange (TSE).

The episode prompted a fall in shares of Mizuho's parent company.

Investigation

Shares in Mizuho Financial Group fell 3.4% on speculation that its securities arm could incur losses from the incident.

Mizuho Securities could not be reached for comment.

Shares in J-Com, which recruits staff for telecoms businesses, rose immediately after making their debut on Thursday.

We are aware that an order that is hard to comprehend has been placed
Tokyo Stock Exchange

However, they soon fell 100,000 yen to 572,000 yen - below their issue price of 610,000 yen - after the share sale order emerged.

The shares subsequently recovered, closing at 772,000 yen.

The TSE said it was investigating trading in J-Com shares although it did not comment on who had sought to sell the shares.

"We are aware that an order that is hard to comprehend has been placed," an Exchange spokesman said.

The incident resembles an erroneous share sale which marred the market debut of advertising giant Dentsu in 2001.

Broking firm UBS mistakenly sold some 65,000 Dentsu shares, most of which Dentsu subsequently had to buy back.




SEE ALSO:
Computer glitch hits Tokyo market
01 Nov 05 |  Business


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