Page last updated at 07:16 GMT, Wednesday, 13 January 2010

Shares in Japan Airlines dive 81%

Japan Airlines planes
Analysts say the market is driving the company's share price down

Shares in the troubled carrier Japan Airlines (JAL) have continued their steep fall on mounting speculation that it will file for bankruptcy next week.

JAL shares tumbled by the daily limit of 30 yen for the second day in a row, falling 81% to a new record low of just 7 yen (7.7 cents, 4.7 pence).

The airline's market value has fallen by about $1.8bn in two days to $200m.

Reports say JAL is set to receive government funds worth about 300bn yen under a restructuring package.

The package would see it file for bankruptcy.

"The selling is unstoppable," said Hideaki Higashi, market strategist at SMBC Friend Securities.

"Event-driven market players are hammering down JAL. It's a money game.

"The market is driving the company to go under," he said, adding that the share price could technically fall to one yen.



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