SoftBank shares surge to record after optimism for AI prospects boosted Q1 earnings
SoftBank's share price hit 14,205 yen at the close of morning trading.
SoftBank has announced a series of mammoth investments this year, including committing $30 billion to ChatGPT maker OpenAI, as well as leading the financing for Stargate - a $500 billion data centre project in the United States.
The firm beat analysts' expectations to report a net profit of 421.8 billion yen ($2.87 billion) for the April-June quarter, compared to a loss in the same period a year ago.
Market enthusiasm for AI-related companies also pushed up valuations for its portfolio of listed and unlisted technology companies such that SoftBank's loan to value ratio improved to 17 per cent at the end of June compared to 18 per cent at the end of March.
The results were "evidence of SoftBank's quality diversified portfolio, strong underlying fundamentals, thematic/secular tailwinds for its equity holdings, and the resilience of its balance sheet," Macquarie analyst Paul Golding wrote in a note.
SoftBank was the biggest contributor to gains for Japan's Topix index, which rose some 1.5 per cent to trade above the 3,000 point mark for the first time in its history.
The jump will provide some relief to SoftBank investors as its shares have traded at a more than 50 per cent discount to the value of its assets over the past five quarters.
"Active investors scooped up SoftBank Group shares to beat the Topix's gain," said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Research Institute.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
8 minutes ago
- CNA
Court orders granted against immigration consultancy firms, their operator over misleading practices
SINGAPORE: The Competition and Consumer Commission of Singapore (CCCS) has obtained court orders against two immigration consultancy firms and their operator for engaging in unfair trade practices. VED Immigrations and SAVA Immigrations, as well as a third firm, Paul Immigrations, were found to have misled consumers into believing that there was an urgent need to apply for Singapore permanent residency (PR), and that the firms could guarantee the success of applications made through them. In a media release on Monday (Aug 11), CCCS said that the "mastermind" behind the firms' trade practices was one Mr Cheng Yong Teck. Investigations into the firms began after the Consumers Association of Singapore (CASE) received several complaints regarding Paul Immigrations' sales tactics. CASE continued to receive complaints against the firm even after it signed an agreement to stop the misleading practices. After CCCS found that Mr Cheng had ceased Paul Immigrations' operations but resumed similar practices through VED Immigrations, the focus of its investigations shifted to the latter firm. Then, investigations found that Mr Cheng was also operating through another business, SAVA Immigrations. All three immigration consultancy firms' websites included forms that allowed potential customers to check their chances of obtaining permanent residency. According to CCCS, instead of receiving results online after filling out the forms, these individuals would receive phone calls inviting them for "free consultations". "During these consultation sessions, sales staff would make unsubstantiated claims about rapidly changing PR rules and intense competition from other applicants, to try to persuade customers to apply as soon as possible," said Singapore's consumer watchdog. "The sales staff would then make baseless guarantees of PR application approval if customers engaged their services. "CCCS found no reasonable basis for the businesses to make such claims or guarantees, except to close the deals." Customers paid up to S$10,000 (US$7,790) for such services. Investigations revealed that Mr Cheng was responsible for directing the operations of these businesses and was deliberate in implementing the misleading trade practices. When Paul Immigrations was investigated, Mr Cheng continued to operate through the other businesses to evade detection. CCCS said: "Cheng personally wrote scripts on what staff members needed to do and say to prospective customers, monitored their sales tactics through closed-circuit television footage and implemented a punishment-and-reward system to ensure that his staff members followed his methods." A district court on Jul 22 ordered Mr Cheng, VED Immigrations and SAVA Immigrations to cease the unfair trade practices; publish details of the court orders on online platforms used for marketing their services and in major newspapers in Singapore; inform all potential customers about the court orders before entering into contracts with them; and notify CCCS about any changes to their business structures, as well as to Mr Cheng's employment status and his control or ownership of his businesses. CCCS said that this is its first court action against a person who used new business entities to conceal unfair trade practices. Its chief executive Alvin Koh said that consumers' insecurities and unfamiliarity with Singapore's immigration system were exploited by the three firms, misleading them into paying substantial sums of money. "The mastermind attempted to evade detection by closing the initial business while continuing the same practices through other businesses,' said Mr Koh.
CNA
38 minutes ago
- CNA
High prices dampen gold demand in India, but festive season may bring back the shine
MUMBAI: At this time of the year, jewellery sellers in India usually report strong sales of gold as the festive and wedding season draws close, peaking with Diwali in November. The precious metal is a status symbol in India, considered auspicious to buy during certain Hindu festivals. It is also a part of wedding dowries and serves as a way of storing wealth for many people. But demand for gold in the world's most populous country has been slipping as prices near record highs, bolstered by global uncertainty and a weak Indian rupee. LARGEST CONSUMER India was the world's largest consumer of gold jewellery last year, purchasing more than 560 tonnes, according to data from the World Gold Council (WGC). Its popularity is such that many neighbourhoods in cities like Mumbai are home to several jewellery shops. Jewellery remains the predominant gateway through which most Indians purchase gold, but the metal's high prices have weighed heavily on buying sentiment this year. Domestic prices have risen 28 per cent so far in 2025, hitting a record high of 101,078 rupees (US$1,200) per 10g in June. According to the WGC, demand for gold in India fell by 10 per cent to 134.9 tonnes in the second quarter of this year, compared to the same period in 2024. The WGC expects gold consumption in the country this year to fall to a five-year low, reported Reuters last month. Demand for jewellery dropped 17 per cent in the April to June quarter, but this was offset by a 7 per cent increase in other gold investments including bars, digital gold, and exchange traded funds (ETFs). 'SAFE HAVEN' ASSET Still, its cultural and religious significance could bring back the shine. Lifestyle influencer Suhani Mendonsa said the price of gold – which has hit more than 10,000 rupees per gram – is not stopping her from purchasing the metal. 'Because the gold prices are so high, you buy jewellery in such a way that it's going to be an investment for you,' she told CNA. Jewellers in India like Sunit Srimal are also optimistic that people will not stop buying, despite higher demand potentially pushing prices even higher in the approaching festive season. 'It's the glitter, the glamour, the reserve, the stability, the security of mind that if in future something goes wrong, there's always a gold reserve,' he added. Gold is seen as a 'safe haven' asset around the world, drawing investors during times of uncertainty. International gold prices have been rising over trade and geopolitical tensions, with its spot price breaking US$3,000 per ounce in March and surging to US$3,500 less than two months later. Rates in India have been hitting new highs as the rupee has also depreciated against the United States dollar. This has made imported gold even more expensive in India. Analysts say the coming weeks will be crucial. 'People would definitely buy gold in the festive season. The demand would be there - but in which form the people would buy? Would that be ETFs, bars and coins? Or would that be the jewellery demand?' noted Naveen Mathur, director of commodities and currencies at Anand Rathi Share and Stock Brokers. 'I would not be too gung-ho that people would go with bags full of money to buy gold this festival season, because of the prices,' he added.
CNA
2 hours ago
- CNA
Malaysia's palm oil stocks rise to highest in nearly two years
KUALA LUMPUR :Malaysia's palm oil stocks rose for a fifth consecutive month in July to their highest level in almost two years as production growth outpaced exports, data from the industry regulator showed on Monday. The rise in inventory in the world's second-biggest producer of the tropical oil could weigh on benchmark Malaysian futures, which were trading near their highest in nearly four months. [POI/] Palm oil inventories at the end of July rose 4.02 per cent over the month to 2.11 million metric tons, the highest since December 2023, data from the Malaysian Palm Oil Board (MPOB) showed. Crude palm oil production was up 7.09 per cent in July from June to 1.81 million tons, the highest since September last year, while palm oil exports increased by 3.82 per cent to 1.31 million tons after a large fall in June, the MPOB said. A Reuters survey had forecast Malaysian inventory at 2.25 million tons, with output seen at 1.83 million tons and exports at 1.3 million tons. Malaysian July exports were capped by aggressive selling at a discount by rival Indonesia, which wanted to ship as much as possible before a higher export duty becomes effective in August, said Tajgir Rahman, general manager, trading and procurement at IFFCO. Exports from Malaysia will rise in August, as Indonesia's move to raise its export tax narrows the discounts that Indonesian shipments had been enjoying over Malaysian supplies, he said. Malaysia's palm oil exports in the first ten days of August rose 23.3 per cent compared to the first ten days of July, cargo surveyor Intertek Testing Services said on Sunday. The rise in palm oil stocks is not burdensome for the market, as production in August is underperforming, while exports are picking up, said Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group. Following is a breakdown of the Malaysian Palm Oil Board figures and Reuters estimates for July (volumes in tons): July 2025 July 2025 June 2025 July 2024 poll Output 1,812,417 1,827,695 1,692,370* 1,840,999 Stocks 2,113,278 2,250,000 2,031,560* 1,754,384 Exports 1,309,059 1,300,000 1,260,930* 1,689,710 Imports 60,000 70,015 10,483 61,039
