Nintendo stock fell recently, causing the biggest decline in three weeks. The backslide came off a recent announcement that the Japanese government plans to sell its 1.4 percent of outstanding stock in the company.
The stock fell by about 2.7 percent, ending at 32,950 yen on the Osaka Securities Exchange. Nintendo has claimed that the government’s 1.987 million shares will be priced between March 5 and March 8. As of last Friday, the stock had a value of 67.3 billion yen, or around $557 million.
The sale comes as a result of Nintendo wanting more individual shareholders to help in increase liquidity. Outstanding sales of the Nintendo DS and Wii have aided in the decision.
According to Yoku Ihara, head of equity research at the Tokyo-based Retela Crea Securities Corporation, “The news suggest[s] a worsening of share supply and demand, and comes at the time of concern that the stock’s price is high.”
Stay tuned to Advanced Media Network for updates.