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Nomura Sinks to Crisis-Level Valuation as Bad News Keeps Coming

Nomura gets deeper into the troubled waters

Nomura Sinks to Crisis-Level Valuation as Bad News Keeps Coming
A traffic signal stands in front of a Nomura Securities Co. branch in Tokyo, Japan. (Photographer: Toru Hanai/Bloomberg )

(Bloomberg) -- The relentless slide in shares of Nomura Holdings Ltd. is headed for unprecedented territory.

Japan’s largest brokerage sank toward its lowest close since 2012 on Wednesday, sending the firm’s valuation to 0.43 times net assets. That’s within a hair’s breadth of an all-time low set during the European debt crisis in 2011 and leaves Nomura trading at a record discount versus global financial shares, according to data compiled by Bloomberg.

Nomura Sinks to Crisis-Level Valuation as Bad News Keeps Coming

Nomura’s stock has dropped 17% this year as the firm reported its first annual loss in a decade and investors questioned whether Chief Executive Officer Koji Nagai can revive a business buffeted by volatile global capital markets and increased competition at home. The company’s prospects have only gotten worse in the past week after Japan’s financial regulator slapped it with a rare business improvement order for improperly sharing sensitive information. Several Nomura clients dropped the firm from bond deals after the revelation.

To contact the reporter on this story: Michael Patterson in Hong Kong at mpatterson10@bloomberg.net

To contact the editors responsible for this story: Marcus Wright at mwright115@bloomberg.net, Russell Ward

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