Shares in Japan’s Tepco hit a new closing low on Thursday, ending the session down 4.0 per cent at 192 yen on uncertainty over the fate of the beleaguered company due to the crisis at its nuclear plant.
Shares recovered from a 20 per cent slide at noon and after hitting a record intraday low of 148 yen on short covering by hedge funds betting that the Japanese government will renew its pledge to support the firm, dealers said.
Recent selling by short-term speculators has been driven by ongoing concerns the utility may be forced into a court-backed restructuring process that will entail the delisting of its shares, analysts say.
The Japanese Government last month announced a rough scheme for rescuing Tepco to ensure the payment of compensation, but critics have called for more clarity amid political wrangling.
Japan has been gripped by political turmoil since centre-left Prime Minister Naoto Kan last week survived a no-confidence motion after promising he would resign soon, sparking heated debate on when exactly he should bow out.
Tepco shares have lost more than 90 per cent of their value since the day before the March 11 earthquake and tsunami, which crippled cooling systems at the Fukushima Daiichi nuclear plant, triggering reactor meltdowns.