Share sale hits Daiwa Securities

Daiwa Securities hopes to raise $2.5bn

Daiwa Securities has seen its shares fall 12% after announcing plans to raise 240bn yen ($2.5bn; £1.5bn) in a public share offering.

The brokerage set out plans before the weekend to issue up to 345 million new shares between 15-21 July.

Traders were disappointed by the move after the firm recently suggested it had sufficient capital.

Daiwa is trying to raise the cash as it faces increasingly tough competition both domestically and overseas.

"At least until [Daiwa] explains its growth strategy and provides details of the actual use to which the funds raised in the capitalisation will be put, it is difficult to be positive on the news," said Azuma Ohno, an analyst at Credit Suisse.

Daiwa reported a loss of 85bn yen in the year to 31 March.