“More than 50 million yen was wiped out” – the biggest drop in the history of the Tokyo Stock Exchange – some investors in Hyogo are disappointed and are watching the price movements calmly．
On the 5th, when the Nikkei Stock Average recorded its biggest drop ever, investors in Hyogo Prefecture had a wide range of reactions. While there have been concerns raised about how far the rate will fall given the rapid movement at a time when the government is spearheading policies to shift from savings to investment, such as the new NISA (tax-free small investment system) that started in January, there have also been more calm responses, saying that the government should “wait and see how things develop.” “Gross” “Scary…” In front of Nomura Securities Kobe branch in Sannomiya Center Street, Kobe. A passerby blurted out in front of the stock price board. Some people were taking photos of the closing prices on their smartphones, while others were reading out over the phone with a wry smile the amount each stock had fallen. “I thought things were bad when stock prices fell on the 1st and 2nd (of August), but today 50 to 70 million yen has been wiped out.” A 70-year-old man from Tarumi Ward, Kobe City, took note of the closing price and laughed weakly. The majority of his holdings are Toyota Motor Corp. shares, which he said have “dropped nearly 1,000 yen since he bought them.” Even so, he said, “I’ve been stung in the past, so I have to accept that things like today will happen,” and intends to continue holding the shares. “Once it exceeded 30,000 yen, I started thinking it was like a comic book. What goes up must come down,” said a 76-year-old female company executive from Nada Ward in the city. He said he had witnessed Black Monday before and said, “This is no time to panic. I’ll go home and do some research,” he said, and hurried home. A 70-year-old farmer from Awaji City who owns about 20 stocks believes that “we probably haven’t hit bottom yet.” “There are also stocks that are bought for dividends and perks. I want to wait and see without buying or selling.”
□□ A housewife (58) from Tarumi Ward, Kobe City, who has been managing investment trusts worth over 10 million yen for the past eight years, said, “I made a profit a while ago, and I was waiting to see if it would go up a bit more. “I can’t believe it’s fallen so much in such a short period of time,” he said, not hiding his disappointment. “I’m scared, and don’t want to look at the stock price for a while,” he lamented, but at the same time, he added, “I believe that if we wait, it will definitely recover. I am considering buying more once the price falls to the lowest point.” The government has encouraged asset formation through investment by expanding NISA, among other measures. A 23-year-old male company employee from Hyogo Ward in the city who is using the new NISA said, “People around me of my generation are also starting to do this because they are worried about their future, such as pensions. I was shocked when I saw the extent of the drop on my smartphone, but in the long run I’m sure it will go up again,” he said, also taking a wait-and-see approach. □□ Retailers are nervous that this could have a chilling effect on consumer sentiment. “People are already tightening their purse strings due to high prices…” Satoshi Sugizaki, manager of Kobe Hankyu (Chuo-ku, Kobe), is concerned. The exchange rate also briefly fell to the 141 yen range against the dollar, the highest level in about seven months, raising concerns about the negative impact this could have, “which could become a headwind for strong inbound tourism (visitors to Japan) consumption.” (Hirooka Mari, Saito Masashi, Otaka Aoi) Kobe Shimbun 2024/8/6 05:30.
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