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SHŌWA 43 | OCTOBER 1968

東京証券取引所


TŌKYŌSHŌKENTORIHIKIJO

  N I P P O N K E I Z A I     N O     C H Ū S H I N C H I  

 オー・スネイル 富士山に登ろう でも、ゆっくり、ゆっくり 

O Snail; Climb Mount Fuji But slowly, slowly!

KABUTOCHŌ — EVENING
_{TOKYO, Nippon-Nihon}

| The New York Stock Exchange is not the only one that has performed well. On the Tokyo Stock Exchange, prices rose until they surpassed the previous peak reached in ‘61. Japan’s Dow Jones day ended at 1,839 yen ($5.09). This performance reflected the growing strength of the country’s economy. Although the inflation rate is 6%, Japan could surpass West Germany in terms of Gross National Product. EISAKU SATO’s government made several revisions to GNP growth estimates for 1968, from the original 7% to 8.5% and, recently, to 9.6%. Exports reached $13.3 billion, an increase of 23%, thus transforming the 1967 balance of payments deficit of $535 million into a surplus of around $750 million. The mood was different when the Tokyo Stock Exchange peaked in ‘61. It turned out that this height was based on very fragile soil and soon quickly collapsed. Rampant speculation by unregulated brokers, who used clients’ portfolios as collateral, was the main reason for the price increase. When the bubble burst, investors lost the money they had saved their entire lives. |

| The type of speculation that occurred in ‘61 has now been curbed by the licensing of security companies. The bad memories of 1961 have also been overshadowed by today’s prosperity. In 1967, 6% of Japan’s population owned securities, and in 1968, small investors invested about $1.9 billion of their savings. Foreigners are also keeping an eye on the Tokyo Stock Exchange despite the 15% dividend tax. European investors are buying Japanese companies at a monthly rate of $21 million, up from the average of $5 million a month in 1966. Trading in Sony Corp., one of the favorite stocks of blue-chip companies, has already reached the government-imposed 20% limit on shares that foreigners can own in a company. The Tokyo Stock Exchange seems like a paradise for speculators. The maximum of 574 million shares has already been reached. Shares are priced at prices that appear to be very low; most stocks are below the $1 level. The most expensive stock, Sony, is selling for $3.60 per share. The 1,245 companies on the Tokyo Stock Exchange hold a total of 91.6 billion shares. Auto giant Toyota Motor Co. has 765 million — almost three times more than General Motors. |