Nomura shares sink due to million-dollar losses

March 29, 2021

By Admiral Markets

Nomura shares plummeted by 16% on the Tokyo Stock Exchange this morning after the Japanese financial entity announced million-dollar losses for its US subsidiary. Specifically, the bank reported “an event” related to the transactions of a subsidiary in the United States that could cause a “significant loss.”

The transactions amount to approximately 2 billion dollars, according to the entity that clarifies that the final amount will depend “on the reversal of transactions and fluctuations in market prices” while analyzing “the extent of the possible loss and the impact on its financial results.”

Despite the losses, Nomura assures that the incident will not cause problems in its financial strength and that it will report everything “once the impact of the potential loss has been determined.”

Nomura is listed on the New York Stock Exchange as ADR. You can see its price evolution In the following graph:


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Source: Admirals MetaTrader 5. Nomura ADR CFD weekly chart. Data range: from November 29, 2015, to March 29, 2021. Prepared on March 29, 2021, at 9.30 a.m. CET. Keep in mind that past returns do not guarantee future returns.

 

In the graph, we can see a first lateral period that ends in January 2018 when the stock fell and hit the ground in June 2019. From there it goes back but the price falls again due to the coronavirus pandemic (yellow rectangle). From there it goes back to the current moment when it is close to breaking the resistance it left in January 2018.

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By Admiral Markets