JT shares were sold down to the limit-down level for the second consecutive day in the Tokyo market on the 9th, amid growing concerns that moves to temporarily place its Russia business under control will affect earnings. As the reorganization of Russia-related businesses advances, the rising risk of a dividend cut is also drawing attention.
JT shares were driven down to the limit-down level for the second consecutive day in the Tokyo market on the 9th. Market attention is focused on moves to temporarily place its Russian operations under control and the outlook for their impact on earnings. Some believe Japan Tobacco is gradually losing the defensive-stock characteristics it had been considered to possess because of its relative insulation from the external environment.
Russian President Putin was reported on the 6th to have newly placed the shares and equity interests of 3 companies, including JT's sales companies in Russia, under state control. This could directly affect the operating structure of the local business and is viewed as a factor creating uncertainty over the stability and profitability of JT's Russian operations.
Concerns are growing that the risk of a dividend cut is increasing as uncertainty surrounding the local business rises. Investors are expected to focus on how Russia-related developments will be reflected in JT's financial position and capital allocation policy.