As we reported last week, an EU referendum result in favour of the UK leaving the bloc (referred to commonly as Brexit) caused chaos in financial markets - Nintendo was among many victims of falling share prices as stock markets struggled. With the first full week of trading now well underway following that result, there are signs that after sizeable drops the markets are recovering; by extension that's good news for Nintendo.
In general the Nikkei recovery in Tokyo has been around 1.5% in the most recent day's trading, as reported by The Guardian; Japan's Prime Minister Shinzo Abe has also been urging Bank of Japan to also take steps to avoid a 'credit squeeze'. As for Nintendo's share value, after sitting steady near its recent low-point (which was the lowest in over a year) across 27th / 28th June, it has jumped a welcome 4.63% to 14,475 Yen (via Bloomberg) on 29th June.
As you can see in the daily, monthly and annual charts below, that represents a decent price recovery.
Should markets continue to recover from the 'Brexit shock' this Nintendo share value may climb steadily to pre-drop levels in the coming days; time will tell.
As mentioned in our original report it's a reminder that company shares can be at the mercy of broader trends, though Nintendo seems to recover relatively strongly within the broader picture. The company also has, as highlighted frequently in the past, a sizeable balance of cash and assets to keep it in business for a long time yet.
[source bloomberg.com, via theguardian.com]
Comments 28
Well, that's good news for them.
Neat
Oh look, less than a week and things are getting back on track. The world economy was doomed by the brexit for what, a few days. Lol.
I guess all the fearmongering by the elite leftist globalist and media didn't work.
Nintendo is just another company who's shares have dipped. They may pick up straight away or they may take longer to recover. In the end all shares rise or the company disappears.
If it means the NX will cost more, then it will cost more but since we don't know the price anyway it won't matter.
@freaksloan
I'd like to give a solid reply, but I won't.
Politics don't belong here, so stop bringing it up!
@Zoriam oh please, nintendolife specifically brought up brexit in the article, they practically invited this.
So people were lying when they said there'd be a global recession that does damage on par with WW2?
What? Damn it! I need to stop listening to these people.
Relax, UK will probably get an EEA agreement. Which means they will pay almost as much as now to EU, have to be part of the schengen area (which they aren't at the moment), will still need all regulations and will have no vote in new laws.
Also, economically it will most be felt in EU and mostly UK. The rest of the world, except companies which relies on heavy EU exports, will continue as usual.
Was a perfect time to invest, so I did.
Free hugs to all of you.
As expected. Something big happens, stock markets respond with a tiny heart attack but bounce back, so it's all in a day's work in the stock exchange business. We've seen this happen with any product or company and it's shares after accidents, wars, public outrage and what not.
First the event always causes the dip, and then some time later you'll see the more or less complete bounce back to normal.
It's a natural, organic process where stock markets are concerned.
Markets are still lower overall, and the value of the pound is still well below the pre-Brexit levels, so hardly back to normal. Initial reactions in the stock markets are always on the extreme side, hence things are picking up since last week, but let's not pretend stock markets haven't lost billions as a result of this. The fact the pound now buys us less than it did last week will take time to show, but it will most definitely hit us at some point.
Nintendo are in a strong position to weather this out though, given their strong balance sheet, and logically Japanese companies should feel the strain less than European and UK focused ones in the long run.
Maybe games will be released earlier in UK now that it's not in Euro zone anymore. There's no need for different European languages, just like USA, UK should have the same release date.
@Captain_Gonru Personally, I have a strong feeling that in the case of the Brexit it will, but the stock market in general nearly always bounces back.
Remember after the nuclear disaster at Fukushima? Plummeting shares all around because of the affected companies, but they mostly came back after some time. And that was quite a disaster.
And Nintendo specific: remember the share holder meetings last year and/or earlier this year? People were not happy with the information released and there you go: a dip in shares...
@Nintendian European language releases have nothing to do with belonging to the European Union whatsoever, and certainly not "Euro zone", since the UK never belonged to the Euro zone in the first place. European language releases existed before the European Union was even a thing.
Meanwhile, the British have voted to rename their economy "BrokeyMcBrokeFace" in light of recent events, and to continue the trend of voting for stupid things (some of which it turns out actually matter).
@Captain_Gonru
Of course. I realise there are going to be some necessarily economic problems.
I'm just reacting against the crazy scare mongers who've been trying to terrify a population into reversing a democratic vote.
@Zoriam
So what kind of comments do belong here? I'm American, so I'm not going to bother saying anything about a subject (Brexit) I know almost nothing about.
But this article is about financial news that has been directly affected by a highly-charged political issue, and it's on the "internet." And most of the readers here are probably European. I'm sure Nintendolife would rather we not talk about politics, but the article practically invites us to.
@Dezzy @freaksloan To be honest, those who sustained the result of the democratic vote did a pretty bad job as well, since one of the most searched term on Google from UK citizen in this period was "What is the EU?".
I think we need far more insight on these matters than just calling the pro-Europe part crazy scare-mongers or elite leftist globalist, especially on such important matters.
HNNG should have bought more.
@Dakt Agreed! Too much disinformation spreaded on all parts, and I'm tired of slogans! My point is exactly that I don't like the way it is being handled, with simple slogans dismissing or solving it, as it is a very important matter with many implications that almost anybody knows. Let's go back to video games!
By the way, to return on the actual topic of the article, Nintendo is a multinational company, Nintendo of Europe has their offices in Germany, so I don't see why it should be greatly affected by the results of the referendum. There will be effects of course, but the ones observed immediately are looking to me more like immediate market reaction than moves stemming from a thorough analysis on how Nintendo's revenues, market share and expenses might be affected. So it was to be expected to see the share value rise again.
@Maxz Oh no, you speak a lot of truth in what you say. UK, why do you have to be so stupid? ;-;
Sigh should have bought some stock.
If only I had money to buy stocks, ya know when you buy low like this on a politically influenced fluctation you are bound to make instant money when it bounces back to normal levels.
Nintendo stock would get a boost into the stratosphere if it simply tossed Reggie and his mind-numbing heaps of failures into the sewer where they belong.
SpykeKat: Are these countries stupid too? France, Austria, Finland, the Netherlands and Hungary as they could follow Britain.
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