Asahi Glass: rumor of defect triggers share fall

A rumor of a defect in an Asahi Glass Co. substrate production line, whose output is used for liquid crystal displays, triggered selling of Asahi Glass shares on the Tokyo Stock Exchange on the mornin…

A rumor of a defect in an Asahi Glass Co. substrate production line, whose output is used for liquid crystal displays, triggered selling of Asahi Glass shares on the Tokyo Stock Exchange on the morning of 19 September 2003. At its worst, the stock fell to JPY 753, down JPY 51 from 18 September 2003. Asahi Glass denied the rumor. Nippon Electric Glass Co., which also manufactures LCD glass substrates, fetched a bid price of JPY 1,845, up by its daily limit of JPY 300. Nippon Electric Glass was apparently bought on speculation that the company would benefit from any disruption to production at rival Asahi Glass. Hedge fund managers“ speculative moves might be behind the buying, an official of a midsize brokerage firm said.