JT share price boost as government delays selling part of its holding

The Japanese government has decided to delay selling part of its 50 per cent stake in Japan Tobacco Inc, according to Japan Daily Press and Agence France Presse stories.

The decision was taken in the light of turbulent market conditions and next month’s Lower House elections.

The government is said to be looking to reduce its ownership to around 33 per cent and, in doing so, raise more than ¥500 billion to boost the country’s reconstruction budget in the wake of last year’s earthquake and tsunami.

On news of the delay, JT’s shares increased in value on theTokyostock exchange on Monday, closing the day at ¥2,411, or 6.53 per cent higher.