As the six-month repayment deadline for standardized margin positions approaches, attention is focused on the situation of 20 stocks, including Kioxia Holdings, with large unrealized losses on margin purchases. Kioxia ranks near the top both in terms of the unrealized loss amount and the profit-and-loss ratio.
While the Nikkei 225 at times recovered to the ¥70,000 range, investors who bought Kioxia shares on standardized margin are facing large unrealized losses. Since 25 September, margin trading balances by stock have been disclosed. As of 7 October, Kioxia's standardized margin-buying balance was approximately ¥610.5 billion, with an average purchase price of ¥20,923. Its closing price of ¥17,900 per share was approximately 14% below the average purchase price. The unrealized loss was approximately ¥88.2 billion, the largest among stocks listed on the TSE Prime Market.
Kioxia ranked fourth by profit-and-loss ratio in this ranking. Its position stands out not only because of the large total unrealized loss, but also because of the severity in monetary terms. Of the 123 companies with standardized margin-buying balances of at least ¥3 billion included in the ranking of 20 stocks, 96 had closing prices below their average purchase prices.
SKY Perfect JSAT, a satellite communications company, ranked first, with a closing price of ¥1,945 against an average purchase price of ¥2,714 and a profit-and-loss ratio of minus 28.3%. FIG, a payments-related company, ranked second, followed by Mitsui Mining & Smelting in third place. Although these companies are performing well, selling pressure could intensify as the repayment deadlines for their margin-buying balances approach.
Overall, Kioxia is attracting attention among the 20 stocks with large unrealized losses on margin purchases because both its repayment deadline is near and its unrealized loss is large. Further developments before the deadline and the market reaction are likely to be the focus of follow-up reports.