With the relief in the fear of being unable to pay its debts, Sharp Corporation (TYO:6753) in Tokyo trading witnessed the largest rise in last 38 years, that is since 1974. Amongst the major stocks, it has been one of the worst performers.
Sharp Corporation (TYO:6753) heaved up by 24 percent. At 11:30 am break, it traded at 325 yen. In this year, Sharp Corporation (TYO:6753) came down by 52 percent.
It is merely a month ago that Sharp Corporation (TYO:6753) doubted its survival in the market. This month it has come to an agreement to sell shares worth 9.9 billion yen to QUALCOMM Incorporated (NASDAQ: QCOM), based in San Diego.
Sharp Corporation (TYO:6753) was unsuccessful in acquiring investment of 67 billion yen from Foxconn Technology Group in Taiwan. It also bled in the first half of the fiscal with cash of 103 billion yen.
The full year estimated loss of 450 billion yen brought the state where Sharp Corporation (TYO:6753) proclaimed that it doubts its endurance. This estimation kept in view the inactive demand for the panels under it. In the fiscal year ending on March 31, it noticed a record loss of 376 billion yen.
In addition to many other lenders in Japan, Resona Holdings, Inc. (TYO: 8308) will offer an emergency loan of 360 billion yen to Sharp Corporation (TYO:6753).
There has been an enormous slash down in the number of jobs by Sharp Corporation (TYO:6753). It is eliminating more than 10,000 jobs and specified on September 28 that it has secured around 180 billion yen through Mizuho Corporate Bank Ltd and Bank of Tokyo-Mitsubishi UFJ Ltd, which have been its chief lenders. This has been done in collateral loans. Sharp Corporation (TYO:6753) has been able to accomplish a credit worth 180 billion yen with the time for the same extended till June.
The credit ratings for Sharp Corporation (TYO:6753) have been cut drastically by Fitch Ratings, which advised that such a step has been taken by the company because it anticipates no growth and operative execution in the short term as well as medium turn for Sharp Corporation (TYO:6753) and hence the cut in the rating.
Shares of Sharp Corporation (TYO:6753) were down by 4.28% and trading at ¥314.00
Shares of QUALCOMM Incorporated (NASDAQ:QCOM) were up by 2.13% to close at $63.36
Shares of Resona Holdings, Inc. (TYO:8308) were up by 3.32% and trading at ¥373.