Nomura Holdings shares dropped the most in more than two years after Japan’s biggest brokerage posted lower-than-estimated profit on weakness in its wholesale business and another loss abroad.
The stock dropped as much as 8.5% on Wednesday morning, the biggest daily decline since March 2021. The shares have gained about 13% this year, versus the benchmark Topix index’s 23% advance.
Chief Executive Officer Kentaro Okuda is trying to revive profitability after net income fell in his first three years in charge of Japan’s biggest brokerage. The country’s stock market rally provided a tailwind in the quarter by boosting business catering to individual clients, but the company continued to struggle with high costs and lackluster performance in its global operations.