Nikkei records first weekly loss in 11 weeks amid profit-taking

The Japanese Nikkei index gave up early gains it made at the beginning of the session today, Friday, to close lower and record its first weekly loss after ten weeks of gains, in light of investors taking profits before an expected wave of selling at the end of the month to rebalance investment portfolios.

According to “Reuters”, the Nikkei fell 1.45 percent to 32,781.54 points, after rising as much as 0.8 percent earlier in the session. The index thus recorded a decline of 2.7 percent for the week, which is the first weekly decline in 11 weeks.

The broader Topix index fell 1.38 percent to 2,264.73 points at the close.

Shares in Fast Retailing, which owns the Uniqlo brand, fell 2.38 percent and put the biggest pressure on the Nikkei. SoftBank Group, which invests in emerging technology companies, fell 2.39 percent, and silicon wafer maker Shin-Etsu Chemical fell 1.62 percent.

The trading companies sector lost 3.38 percent, recording the worst performance among the 33 sub-sectors on the Tokyo Stock Exchange.

The index had risen about 18 percent this month after billionaire Warren Buffett raised his stakes in the sector.

The utilities sector bucked the general trend and rose 1.23 percent, becoming one of two sectors in the positive zone, with Tokyo Electric Power Holdings registering a jump of 6.31 percent, to be the biggest gainer on the Nikkei.