Dai-ichi Life Insurance shares rose on Tuesday after a weak start, despite its announcement the previous evening that it posted ¥110.4 billion in unrealised losses on securities for the year ended March due to plunges in its Tokyo Electric Power shareholdings.
The insurer lowered its earnings estimate for the previous fiscal year from a ¥50 billion net profit to a ¥19 billion profit.
But investors bought the stock in the view that all negative factors had been exhausted.
The Nikkei reported during Monday trade that Dai-ichi Life Insurance will book an impairment charge of roughly ¥100 billion on its Tepco holdings for fiscal 2010. But because of the Great East Japan Earthquake, Dai-ichi Life's stock price had already factored in latent losses on securities to some extent.
The stock climbed ¥2000 to ¥128,800.
The Australian Financial Review