TOKYO Nov 8 Social gaming firms DeNA Co Ltd
and Gree Inc are the two most shorted stocks
in Japan's Topix 500 index, data provider Markit
said, as the two firms face headwinds after rapid growth in
DeNA has 20.54 percent of its outstanding shares out on
loan, while Gree has 16.53 percent, Markit data showed. That
compares with an average of 1.1 percent of total shares out on
loan in the Topix 500 index.
Shares in DeNA have fallen 27.2 percent so far this year,
sharply underperforming a 38 percent rise in the Topix 500. The
shares rocketed 93 percent in 2009 and another 59 percent the
following year, but are down 52 percent from a record high hit
in August 2011.
The stock is likely to come under pressure on Friday after
the company reported a 17.4 percent drop in operating profit for
the six months ended September to 32.06 billion yen ($323.7
million), slightly below its own guidance of 33.7 billion yen.
Shares of rival Gree have also been battered. The stock is
down 39 percent year-to-date after slumping nearly 50 percent in
2012. It jumped 157 percent in 2011.
With both DeNA and Gree shares heavily borrowed, the
software sector was the most shorted with an average of 3.3
percent out on loan, Markit said.
Advantest Corp, chip-making equipment producer, was
the third-most shorted stock, at 10.62 percent of its
It was followed by Nippon Paper Industries Co Ltd
at 10.44 percent, home electronics retailer Yamada Denki Co Ltd
at 10.27 percent and Mitsubishi Motors Corp at
The semiconductor sector was the second-most shorted, at 2.9
percent, followed by consumer services at 2.2 percent and food
retail at 1.7 percent.
Telecom was the least shorted with only 0.2 percent out on
loan, Markit data showed.
($1 = 99.0450 Japanese yen)
(Reporting by Dominic Lau; Editing by Stephen Coates)