Shares in Japan’s Toyota Motor Corp spiked higher in Europe on Monday on speculation that a widely anticipated share sale might be shelved, traders said. Toyota was quoted as high as 3,800 yen in London on much higher than usual turnover of 200,000 shares, up from the Tokyo close of 3,520 yen and well above last week’s 15 month low of 3,370 yen.
“Toyota has rocketed. The price has been weak in the last few days because there has been talk that there was going to be a very large secondary offering of stock. It has filtered out that the offering is being cancelled so that huge stock overhang won’t be a problem,” said a trader at a European house.
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Late last week Toyota shares dropped on speculation Japan’s biggest automaker and its banks were selling off their mutually-held shares ahead of planned bank mergers and a new accounting system in April.
“The shares got beaten last week on talk of a big share placing and now there is a story making the rounds that it has been put off,” said another trader .”
Toyota shares made ground in Tokyo earlier on Monday as the dollar rose against the yen, raising hopes major producers would reap export gains.
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