Investors are pricing shares in Japan’s Kobe Steel at more than 20 per cent below their closing level from Friday, as the market reels from revelations that the firm falsified data on aluminium and copper parts.
Shares in the disgraced firm have not traded so far on Tuesday, because the 21.9 per cent fall implied by investors’ orders is below the maximum fall that companies of its size can sustain in a single day’s trading. Japan’s market was closed on Monday.
Kobe Steel admitted on Sunday to falsifying inspection data on about 20,000 tonnes of metals used in aircraft and automobiles in the latest quality scandal to hit corporate Japan.
The company said the issue affected shipments from four domestic factories to about 200 customers in the year to August 2017. End users included the troubled Mitsubishi Regional Jet.
Shares in Japan’s major aluminium product makers jumped on Tuesday.
Daiki Aluminium Industry was up 9.3 per cent after touching a record high earlier in the session. UACJ lifted as much as 7.3 per cent, after hitting its highest level since February. Steel trader Molitec Steel spiked 16 per cent to its highest level in 12 years.