Nikkei turns negative to slip 0.8 pct, Casio drops

Tokyo, Apr 17: The Nikkei average slipped 0.77 percent on Tuesday, as investors took profits in Kyocera Corp and other recent gainers while Casio Computer Co. Ltd. tumbled after Goldman Saches downgraded the stock.

Investors also held back ahead of a string of U.S. indicators and earnings from technology companies such as Intel Corp. on Tuesday.

''The problem is that no one thinks that the Nikkei would hit 18,000 in the near future because of uncertainties in the U.S.

economy,'' said Tsuyoshi Nomaguchi, strategist at Japanese equity research, of Daiwa Securities Co. Ltd.

''Earnings forecasts from Japanese companies will be conservative and unlikely to support the market either. Naturally, investors want to sell whenever they get an opportunity to do so.'' The Nikkei lost 136.38 points at 17,491.92 as of 0434 GMT, while the broader TOPIX index was down 0.88 percent to 1,710.50.

Takahiko Murai, general manager of equities at Nozomi Securities, said retail investors in March scooped up a lot of stocks at the last minute to earn the right to receive dividends for the fiscal year ended last month and they are now selling these stocks.

''I think it's retail investors who are selling now.

Institutional investors are debating what to buy for this fiscal year,'' he said.

Kyocera, an electronics parts maker, fell 1.4 percent to 11,590 yen, shedding part of its 3 percent gain from the previous session.

TDK Corp lost 1.3 percent to 10,580 yen.

In the same technology sector, Casio Computer dropped 4.3 percent to 2,470 yen after Goldman said in a report on Monday that it had lowered the rating on the stock to ''neutral'' from ''buy'', removing it from its Japan Buy List.

Bucking the overall bearish trend, Mitsui O.S.K. Lines Ltd. rose 2.5 percent to 1,439 yen after the Nikkei business daily reported the shipping firm will likely post a 1 percent rise in 2006/07 recurring profit to a record high, beating its own forecast of a 1 percent fall.

Among other gainers, Nikon Corp. climbed 3.1 percent to 2,855 yen after Goldman Sachs raised its rating on the camera and semiconductor-making equipment maker to ''buy'' from ''neutral'' and lifted its target price to 3,200 yen from 2,480 yen.

Reuters