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TEPCO on shaky ground amid worries of nationalization

TEPCO shares were left untraded on a glut of sell orders amid concerns that the government would be nationalizing the company after the Fukushima nuclear plant disaster.

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TEPCO to be nationalized? The logo of Tokyo Electric Power Company (TEPCO) is seen at its Shinagawa thermal power station in Tokyo on January 26, 2009. A plan to temporarily nationalize TEPCO, the operator of the stricken nuclear plant, has been floated within the Japanese government, the Yomiuri newspaper said on Tuesday.

Reuters/File

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Japan's Nikkei average fell on Tuesday, hurt by growing worries about the crippled nuclear plant and the impact of the earthquake and tsunami on corporate earnings, with plant operator Tokyo Electric Power untraded on a report it may be nationalized.

The Nikkei's fall was exaggerated by around 83 points, according to estimates by market players, as it came under more selling pressure after the date passed for investors to receive dividends for the current business year ending March 31.

Shares of Tokyo Electric were untraded on a glut of sell orders after the Yomiuri newspaper said the government would temporarily nationalize it and help pay compensation for damage caused by its Fukushima nuclear plant.

"The situation in Fukushima has a big, underlying impact on the market, with worries over the plant likely impacting Wall Street yesterday," said Kazuhiro Takahashi, general manager at Daiwa Securities Capital Markets.

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