TOKYO, Nov 9 (Reuters) – Japan Tobacco shares were untraded with a glut of sell orders early on Monday after Russia placed all of the company’s local entities under temporary administration, raising uncertainty about earnings from one of its most profitable overseas markets.
The company, which generates about a quarter of its adjusted group operating profit and roughly 10% of revenue in Russia, said it was assessing the potential impact on its financial results. The business continues to operate in Russia at present, the company said in its statement.
Japan Tobacco’s shares were untraded on Monday with a glut of sell orders, with the last bid at 5,469 yen. On Friday, its shares fell by their daily limit of 1,500 yen to close at 6,269 yen, a drop of 19%.
Russian President Vladimir Putin expanded the list of Japan Tobacco International businesses placed under temporary administration, adding three more companies to those included in the original order, issued on Thursday.
The Japanese government owns about 37% of Japan Tobacco’s shares.
(Reporting by Mariko Katsumura and Rocky Swift; Editing by Chris Reese and Thomas Derpinghaus)
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