Toshiba shares dip 8% after stock put under supervision in Tokyo

Toshiba shares fell as much as 8.1 per cent on Wednesday after the company was put under supervision by Tokyo’s stock exchange.

The Tokyo Stock Exchange announced on Tuesday that Toshiba had been designated as under supervision to determine whether the company met delisting criteria, write Leo Lewis and Hudson Lockett.

Part of the impetus behind the Wednesday morning sell-off , said Tokyo-based traders, may have arisen from the fact that investors woke up to find several analyst notes warning that Toshiba had taken a clear step closer to being delisted from the Tokyo Stock Exchange.

By putting Toshiba on “security under supervision” status, the exchange nudged the troubled conglomerate one regulatory notch towards a delisting, although some analysts now argue that the bourse is still some way from actually pulling that trigger.

The Japanese conglomerate was granted a second extension for the submission of its third-quarter numbers on Tuesday and said it will pursue a disposal of the nuclear division responsible for its distress. Shares had rallied to end flat after falling as much as 9 per cent that day.

Shares had pared losses to be down 7 per cent in morning trade. The benchmark Topix index was down 0.4 per cent.