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Tokio Marine (8766.JP): Rebound Losing Steam

Tokio Marine Holdings (8766.JP), Japan's largest non-life insurer, tumbled 6.8% Friday (May 1), its biggest decline in four years.

The Company, along with other insurance giants such as Sompo Holdings (8630.JP) and MS&AD Insurance Group (8725.JP), are facing increasing risks from the impact of the coronavirus pandemic

Apart from coronavirus-related insurance claims in Japan, these Japanese insurance firms are expected to deal with growing business interruption and employee compensation claims overseas, particularly in the U.S. Lockdowns in major economies implemented to contain the coronavirus pandemic are pushing businesses to the brink of collapse.

Uncertainty of such risks could cap any upside potential of those stocks.

On a Daily Chart, Tokio Marine is 12% off its March closing low of 4223 yen, but is still down 22.5% year-to-date.

Source: GAIN Capital, TradingView

The share-price's significant fall on Friday (May 1) makes the recent rebound look tired.

Only a clear break above the Key Resistance at 5220 yen, around the descending 50-day moving average and the Upper Bollinger Band, would confirm a Bullish Reversal.

If the Stock shows further weakness, it is expected to seek Support at 4500 yen and in extension, 4170 yen (the intraday low of March) on the downside.


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