Nikkei seen edging higher, Nikko Cordial a focus

TOKYO, Feb 26 (Reuters) The Nikkei average is seen edging higher on Monday, extending gains from the previous session's seven-year closing high, helped by improving sentiment among Japan's retail investors.

Shares of Nikko Cordial Corp. may advance after sources said Citigroup is in talks to buy a one-third stake in the scandal-hit brokerage in a TOKYO, Feb 26 (Reuters) The Nikkei average is seen edging higher on Monday, extending gains from the previous session's seven-year closing high, helped by improving sentiment among Japan's retail investors.

Shares of Nikko Cordial Corp. may advance after sources said Citigroup is in talks to buy a one-third stake in the scandal-hit brokerage in a $2.8 billion deal.

''Individual investors are starting to take more risks. They have been seeing gains so whenever the market falls, they are quick to buy at the moment,'' said Toru Otsuka, a deputy general manager of investment information at Mizuho Investors Securities.

Nikkei futures pointed to a a slight decline in the market.

Contracts expiring in March finished at 18,205 in Chicago on Friday, down 15 points from the close in Osaka.

The Nikkei is likely to move between 18,050 and 18,300 on Monday, market sources said.

The benchmark on Friday rose 0.44 percent to its highest close in nearly seven years at 18,188.42.

U.S. stocks fell for a third straight session on Friday, with the Nasdaq composite index losing nearly 0.4 percent.

STOCKS TO WATCH -- Sanyo Electric Co. Ltd.

Sanyo, under investigation by Japan's securities watchdog, is expected to voluntarily revise its financial statement for the year ended March 2004, the Nikkei business daily said on Saturday.

--Sumco Corp.

Sumco said on Friday it will increase its capacity to make advanced 300-millimetre wafers, upping the ante in a race with rival Shin-Etsu Chemical Co. Ltd.

--Komatsu Ltd.

Komatsu, the world's second-biggest maker of construction machinery, said on Friday a share buyback it conducted in July 2005 may have infringed insider trading rules.

--SBI Holdings Inc.

Japanese investment firm SBI said on Friday it would pay $148 million for a near 5 percent stake in Kyobo Life Insurance Co.

Ltd., a South Korean life insurance company.

-- Nintendo Co.

Nintendo Co. said on Friday a state-backed body will sell about $554 million worth of its shares in the videogame maker in a secondary offering. The offering is equal to about 1.4 percent of its shares outstanding.

-- Astellas Pharma Inc.

Astellas, Japan's third-biggest drugmaker, said on Friday it won a suit against Ranbaxy Laboratories Ltd. to prevent the Indian drug maker from releasing an early generic version of its Flomax prostate drug.

-- Nissan Motor Co.

Nissan will set up a car factory in India with Renault SA and Mahindra&Mahindra in 2009, sources close to the matter said on Friday, giving Nissan its first manufacturing foothold in the booming Indian market.

-- Fujiya Co. Ltd.

The scandal-hit cake maker has decided to sell its headquarters building in Tokyo's glitzy Ginza district and the sale is expected to bring in about 10 billion yen, the Nikkei business daily reported on Saturday.

-- Tempstaff Co. and other staffing agencies Temporary staffing agencies have started asking major clients for fee increases of 5-10 percent for the 2007 fiscal year, which would mark the third straight year of increases, the Nikkei business daily said on Saturday.

-- Sankyu Inc.

The transport company said on Friday it would issue up to 18 million new shares including an overallotment, equal to about 6 percent of its shares outstanding. The company expects to reap about 12 billion yen from the issue and said it would use the proceeds for capital investment and to repay debt.

-- Tokyo Dome Corp.

The operator of the Tokyo Dome stadium said on Friday it would sell six golf and resort facilities to Morgan Stanley for an undisclosed sum. The Nikkei business daily estimated the deal was worth 10 billion yen.

-- Sumikin Bussan Corp.

The trading company owned 43 percent by Sumitomo Metal Industries Ltd. said on Friday it would issue up to 17.25 million new shares including an overallotment, equal to about 12 percent of its outstanding shares.

The company expects to raise about 9 billion yen. About half is earmarked for investments and the other half to repay debt.

REUTERS SBA RN0509 .8 billion deal.

''Individual investors are starting to take more risks. They have been seeing gains so whenever the market falls, they are quick to buy at the moment,'' said Toru Otsuka, a deputy general manager of investment information at Mizuho Investors Securities.

Nikkei futures pointed to a a slight decline in the market.

Contracts expiring in March finished at 18,205 in Chicago on Friday, down 15 points from the close in Osaka.

The Nikkei is likely to move between 18,050 and 18,300 on Monday, market sources said.

The benchmark on Friday rose 0.44 percent to its highest close in nearly seven years at 18,188.42.

U.S. stocks fell for a third straight session on Friday, with the Nasdaq composite index losing nearly 0.4 percent.

STOCKS TO WATCH -- Sanyo Electric Co. Ltd.

Sanyo, under investigation by Japan's securities watchdog, is expected to voluntarily revise its financial statement for the year ended March 2004, the Nikkei business daily said on Saturday.

--Sumco Corp.

Sumco said on Friday it will increase its capacity to make advanced 300-millimetre wafers, upping the ante in a race with rival Shin-Etsu Chemical Co. Ltd.

--Komatsu Ltd.

Komatsu, the world's second-biggest maker of construction machinery, said on Friday a share buyback it conducted in July 2005 may have infringed insider trading rules.

--SBI Holdings Inc.

Japanese investment firm SBI said on Friday it would pay 8 million for a near 5 percent stake in Kyobo Life Insurance Co.

Ltd., a South Korean life insurance company.

-- Nintendo Co.

Nintendo Co. said on Friday a state-backed body will sell about 4 million worth of its shares in the videogame maker in a secondary offering. The offering is equal to about 1.4 percent of its shares outstanding.

-- Astellas Pharma Inc.

Astellas, Japan's third-biggest drugmaker, said on Friday it won a suit against Ranbaxy Laboratories Ltd. to prevent the Indian drug maker from releasing an early generic version of its Flomax prostate drug.

-- Nissan Motor Co.

Nissan will set up a car factory in India with Renault SA and Mahindra&Mahindra in 2009, sources close to the matter said on Friday, giving Nissan its first manufacturing foothold in the booming Indian market.

-- Fujiya Co. Ltd.

The scandal-hit cake maker has decided to sell its headquarters building in Tokyo's glitzy Ginza district and the sale is expected to bring in about 10 billion yen, the Nikkei business daily reported on Saturday.

-- Tempstaff Co. and other staffing agencies Temporary staffing agencies have started asking major clients for fee increases of 5-10 percent for the 2007 fiscal year, which would mark the third straight year of increases, the Nikkei business daily said on Saturday.

-- Sankyu Inc.

The transport company said on Friday it would issue up to 18 million new shares including an overallotment, equal to about 6 percent of its shares outstanding. The company expects to reap about 12 billion yen from the issue and said it would use the proceeds for capital investment and to repay debt.

-- Tokyo Dome Corp.

The operator of the Tokyo Dome stadium said on Friday it would sell six golf and resort facilities to Morgan Stanley for an undisclosed sum. The Nikkei business daily estimated the deal was worth 10 billion yen.

-- Sumikin Bussan Corp.

The trading company owned 43 percent by Sumitomo Metal Industries Ltd. said on Friday it would issue up to 17.25 million new shares including an overallotment, equal to about 12 percent of its outstanding shares.

The company expects to raise about 9 billion yen. About half is earmarked for investments and the other half to repay debt.

REUTERS SBA RN0509