Tokyo Electric Power (TEPCO) 9501

[m22au]

I am looking at shorting specific Japanese companies, such as Tepco.

However it may be difficult to short these stocks directly, so I am investigating the possibility of creating a synthetic short, by shorting an index (Nikkei or Topix) and buying a basket that represents most or all of the other stocks.

My initial investigations have found this link for Topix data:
http://www.tse.or.jp/english/market/topix/data/component.html

One consideration is to work out how the index provider(s) calculate an index when a stock like Tepco is ask-only.
http://www.bloomberg.com/apps/news?pid=conews&tkr=9501:JP

Do they use the ask-only price? Or the "last traded" price?

And do the futures based on the index trade at a discount to reflect the expected price of the "ask-only" stocks?

 

[ASusilovic]

Quote from m22au:

I am looking at shorting specific Japanese companies, such as Tepco.

However it may be difficult to short these stocks directly, so I am investigating the possibility of creating a synthetic short, by shorting an index (Nikkei or Topix) and buying a basket that represents most or all of the other stocks.

My initial investigations have found this link for Topix data:
http://www.tse.or.jp/english/market/topix/data/component.html

One consideration is to work out how the index provider(s) calculate an index when a stock like Tepco is ask-only.
http://www.bloomberg.com/apps/news?pid=conews&tkr=9501:JP

Do they use the ask-only price? Or the "last traded" price?

And do the futures based on the index trade at a discount to reflect the expected p

Earlier, Mr Kan lambasted Tokyo Electric Power, the nuclear plant’s operator, for its handling of the crisis. He said the company had been slow to report the initial cascade of system failures starting with reactor No 1 and containment problems at the site.

“The television reported an explosion but nothing was said to the premier’s office for about an hour,’’ Kyodo News reported Mr Kan as saying during a meeting with Tepco executives. “What the hell is going on?’’

Mr Kan warned the company not to withdraw key personnel after Tepco earlier on Tuesday evacuated 740 non-essential staff from the station, leaving a skeleton crew of about 50 to continue efforts to cool the coastal reactors.

“You are the only ones [who can resolve the crisis]. Retreat is unthinkable,” Japanese media reported him as telling executives.