Nintendo’s stocks and share price jumped 4% in Tokyo Stock Exchange (TSE) to reach a value of 14,050 Yen (£91.50~/$140.57~ US). This has put it at its highest closing price since July 2011 a time in which Nintendo was beginning to prime the market for its new console the Wii U.

Speculation could lead to several reasons as to why share prices rise, investors could be seeing Nintendo strengthening its position within the marketplace with key titles doing well like Animal Crossing: New Leaf on the 3DS and the recently launched Pikmin 3.  Another key contributing factor is that there is rumor stating that Nintendo may join Sony on the Nekkei Index, the index lists the most notable stocks available a similar system in the US is the Dow Jones Index.

Another rumor states that China might lift a ban on consoles meaning that Nintendo will be free to sell its hardware within China with no need for partnership, this in turn helped boost the stock price for Nintendo.

What this means to the average consumer, nothing much at all.  Basically rumor and speculation within the markets dictates that Nintendo is a strengthening company and its stocks should only rise in value over the foreseeable future.  Investors like to purchase share’s to gain a profit until the time in which they decide to sell them, whilst being in the pot for a dividend payment.  Stronger companies are more likely to pay a dividend than those whose position in the markets is weakening.

Comments

Comments are closed.

You may also like