Nintendo climbs on share-buyback plan
Nintendo shares jumped in early trade Thursday after the struggling Japanese gaming giant announced a share buyback plan and a pay cut for its president, following a dive in earnings.
Nintendo stock was up 3.26 percent at 13,300 yen in Tokyo in the first 30 minutes of trading after rising more than seven percent earlier.
The broader market was down more than 3.0 percent in the first half hour, after the US Federal Reserve’s decision to cut stimulus spending hit emerging markets and currencies.
After the market closed Wednesday the head of Nintendo said he would slash his salary in half to atone for the earnings downturn.
The company logged a 30 percent dive in nine-month net profit on weak demand for its new Wii U console, with some gamers enticed by cheap, downloadable games for smartphones.
To help shore up its embattled stock, Nintendo also announced it would buy back nearly 8.0 percent of its outstanding shares.
Nintendo is due to hold an analyst conference later Thursday to outline plans for a new business strategy.
The Kyoto-based company last week shocked investors by warning it expects to slip back into the red in the year to March and slashed its Wii U sales forecast owing to weaker-than-expected holiday season demand.
Analysts have criticised the system’s limited game selection, as rivals Sony and Microsoft enjoy robust demand for their new PlayStation 4 and Xbox One consoles.
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