SoftBank shares tumble after Vision Fund reports another big loss
FILE PHOTO: SoftBank Corp. placard is prepared during a ceremony to mark the company's debut on the Tokyo Stock Exchange in Tokyo, Japan December 19, 2018. REUTERS/Issei Kato/File Photo
TOKYO :Shares in Japan's SoftBank Group Corp plunged on Monday after the company reported a heavy loss at its Vision Fund investment arm for a third consecutive quarter.
SoftBank shares were down 11.2 per cent in morning trade, on track for their biggest one-day loss in more than 2-1/2 years.
Analysts said, however, that the share price slide was in part a pullback from a steep rally that had been driven by hopes of more share buybacks. As of Friday's close, SoftBank shares had gained more than 40 per cent since October.
"Various expectations including another round of share buy-backs had pushed their share prices higher, and now they are in an adjustment phase," SBI Securities analyst Shinji Moriyuki said.
SoftBank did not announce a new share repurchase programme on Friday.
The Vision Fund logged investment losses of 1.38 trillion yen ($9.9 billion) in the three months to Sept. 30 as the value of its portfolio continued to slide.
But SoftBank as a whole reported its first quarterly profit in three quarters, buoyed by paring some of its stake in China's Alibaba Group Holdings.
($1 = 138.9900 yen)
