Nomura Holdings Inc. (Nomura) has announced an agreement to acquire NikkoCiti Trust and Banking Corporation through its wholly-owned subsidiary Nomura Trust and Banking Corporation for ¥19 bn. In our opinion, the company will benefit from this deal over the long term, as it will significantly increase the company’s trust asset market share in Japan. Consequently, we upgrade the common stock from a SELL to a HOLD. We will reassess our common stock rating in our…

Nomura Holdings Inc.’s (Nomura) 4Q 09 top- and bottom-line results were significantly weaker than our estimates, as a result of lower interest income and private equity losses. Considering the company’s disappointing quarterly results, as well as the impact of ongoing volatility in global financial markets, and on banking stocks in particular, we maintain our HOLD rating. We will reassess our common stock rating for Nomura in our…

Japanese GDP contracted by 12.1% on an annualized basis in 4Q 08, reflecting weakness in exports; according to the Financial Times, exports fell by nearly 50% in the year ending February 2009. The IMF expects the Japanese economy to contract by 5.8% in 2009 and 0.2% in 2010 (source: IMF staff note to a G20 ministers’ meeting, Global…