Japan’s Nikkei share average was trading flat on Monday, as investors sold stocks to lock in profits after the benchmark index scaled a 33-year high in the previous session, although a strong performance by insurers supported the market.

The Nikkei opened lower, but reversed course to end the morning session flat at 30,833.94. The broader Topix edged 0.15% higher to 2,164.95.

The benchmark Nikkei rose on Friday to its highest level since August 1990, buoyed by ongoing improvement of shareholder returns, robust outlook and the yen’s weakness.

“The market opened lower as investors took a pause after the Nikkei hitting a 33-year high. But the momentum has not changed and the rally would continue for some time,” said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.

“The latest rally was led by foreign investors but as domestic firms continue to boost shareholder returns, retail investors will also join the buying spree. It seems trend of share buybacks will never end.”

Non-life insurers led the gains after Tokio Marine Holdings and its peers posted robust outlook after market close on Friday. Tokio Marine, which also announced a buyback of up to 1.5% of its own shares, surged 5% on Monday.

Shares of MS&AD Insurance advanced 1.85% and Sompo Holdings edged 0.27% higher.

The insurance sector jumped 2.16% to become the top gainer among the Tokyo Stock Exchange’s 33 industry sub-indexes.

The Airlines and railways sub-indexes rose 1.25% and 1.24%, respectively.

Chipmaker Renesas Electronics lost 2.9% to become the biggest loser in the Nikkei. Drug maker Daiichi Sankyo fell 2.49%.
Of the Nikkei components, 145 issues rose, while 72 declined and eight were flat.

Reuters