Japanese consumer lenders in demand on loan recovery hopes
TOKYO, Sept 2
TOKYO, Sept 2 (Reuters) - Shares of Japanese consumer lenders surged on Monday, helped by expectations that recovery in personal loan business will boost their earnings, making non-bank financials among the best performers.
Acom Co Ltd jumped 11.6 percent, on track for its biggest one-day percentage rise in five months.
Rival Aiful Corp soared 10.8 percent to become the second-most traded stock by turnover on the main board, while the non-bank financials sector index advanced 3.5 percent.
"Although non-bank lenders have long been hit hard by tighter regulation and demands to repay excessive interest charges, their personal loan volume is now seen rising this fiscal year for the first time in eight years," said Yasuo Sakuma, portfolio manager at Bayview Asset Management.
That is positive for the companies' stocks as such loans will be the source of their future earnings, he said.
"What's more, their shares have been sold quite heavily over the past few months and looked undervalued," he said.
Acom is up 11 percent so far this year, underperforming a 30 percent rise in the Nikkei. (Reporting by Tomo Uetake; Editing by Stephen Coates)
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