TOKYO: Japan Tobacco shares fell by the daily allowable limit for a second straight day on Monday after Russia placed all of the company's local entities under temporary administration, raising uncertainty about earnings from one of its most profitable overseas markets.
The share move prompted the Tokyo Stock Exchange to quadruple the amount that the stock could fall in a day to 4,000 yen, meaning it could theoretically fall as far as 1,269 yen on Tuesday.
Japan Tobacco's shares closed at 7,769 yen on Thursday before Russian President Vladimir Putin signed a decree to temporarily seize the Russian assets of Japan Tobacco International.
The company, which generates about a quarter of its adjusted group operating profit and roughly 10% of revenue in Russia, said it was assessing the potential impact on its financial results. The business continues to operate in Russia at present, the company said in its statement.
Russian President Vladimir Putin expanded the list of Japan Tobacco International businesses placed under temporary administration, adding three more companies to those included in the original order, issued on Thursday.
The Japanese government owns about 37% of Japan Tobacco's shares. The government received 156 billion yen in dividends for the fiscal year ended in March. - Reuters
