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Japan-based staffing business S-Pool’s (2471: JP) share price tumbled -25%, following an announcement from the government pledging to spend nearly USD 500 million to help in the clean-up operations of the Fukushima nuclear power site disaster.
S-Pool currently supplies workers to Tokyo Electric Power Company’s ruined Fukushima nuclear sites. Retail investors scrambled to sell their shares in the company following worries that there will be fewer contracts if the government steps in to contain leaks and decontaminate radioactive water at the plant.
An analysts at a Japanese brokerage firm commented: “S-Pool had been very popular stock among retail investors on the back of hopes that ‘Abenomics’ could create more jobs. But the Fukushima news triggered a sell-off immediately.”
S-Pool’s shares had earlier risen to JPY 1,206 (USD 12.14) on Monday, the highest level since February 2007, when worries about high radiation levels at the ruined plant heightened.
Trading volume in S-Pool hit a seven-year high today and, following the record trading, the company’s share price closed at JPY 906 (USD 9.11) down -24.9% for the day, but an increase of +312% compared with a year ago. Based on its current share price the company has a market value of JPY 2.34 billion (USD 23.5 million).