Nikkei index ends at week-low, with Socionext’s stock ‎plummeting

Japan’s Nikkei index closed Thursday at its lowest level in more than a week, dragged down by shares of chip-related companies, with Socionext falling to a daily low after its largest shareholders sold their entire stake in the fast-growing chip design company. ‏

According to “Reuters”, the Nikkei fell 1.7 percent to close at 32,773.02 points, the lowest level since June 27, after it recorded its largest daily decline since June 7.

The broader Topix index fell 1.26 percent to 2,277.08 points

Socionext shares fell 22.78 percent, and trading in the stock stopped for most of the session, after the announcement of its major shareholders, including Panasonic Holdings and the Development Bank of Japan, that they would sell their entire stake, amounting to 280 billion yen ($ 1.94 billion).

Socionext, which went public in October last year, has advanced nearly 200 percent this year, becoming one of the iconic chip-related stocks that helped the Nikkei reach a 33-year high.