About 40 percent of institutional investors, such as banks and insurance companies, are considering selling stocks, bonds and other assets ahead of the 10-day Golden Week holiday to commemorate the Imperial succession, according to a survey by Nomura Securities Co.
As a heavy concentration of sell orders before the holiday, which will run from this Saturday to May 6, could disrupt the market, the government has asked financial institutions to provide services to customers during the 10-day stretch.
The survey was conducted April 10-12 on about 100 people in charge of asset management at institutional investors, companies, and other entities.
Of respondents, 42.6 percent said they "planned to shrink" their balances of Japanese stocks, domestic bonds, foreign currencies and other assets. This move is apparently aimed at reducing risk by selling off assets to ensure at least some profit in case there are any sudden swings in foreign markets during the Japanese holiday.
In addition, 58 percent said they expected Japanese stocks could fall during the week or so before the holiday. Opinions were split on how Japanese stocks would do on May 7 when the holiday is over, with 38.8 percent expecting a market jump and 39.8 percent expecting a drop.
"The 10-day holiday is making market participants take a somewhat cautious stance over investment," a Nomura official said.
To ease concerns among investors, the government has asked securities companies and other financial institutions to provide customers with opportunities to make transactions during the holiday. About 40 companies, such as online security firms and major broker houses, have announced that some services such as the trading of foreign stocks will be available during the period.
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