TEPCO shares recover – somewhat – as short sellers get nervous

In the long term Tokyo Electric will need Government support probably in the form of a partial nationalisation but now it is the market traders and their games which control the movement of the share price.

From the Wall Street Journal:

Shares of Tepco ended at their limit-up level of Y420, up 24%, as the Tokyo Stock Exchange imposed a temporarily higher margin rate requirement on new investors. The TSE hiked the margin rate on Tepco shares to a minimum of 50%–of which at least 20% must be cash–from 30% (with no cash requirement), in line with a pre-existing rule set up by the exchange. “The selling pattern has changed, and some people are covering their existing short positions as they are nervous about even stricter rules in the future,” said Yukifumi Watanabe, a trader at Himawari Securities.

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