Capcom stock reaches five-year high

Capcom's stock has risen to a five-year high on the Tokyo Stock Exchange, largely on expectations that sales of its games for the Nintendo Wii will boost earnings.

According to a Bloomberg report, Capcom's stock has climbed 6.3 per cent to 2,855 yen, its highest close since Sept. 26, 2002, compared with a 0.5 per cent gain in the benchmark Topix index.

The company's shares have risen a total of 14 per cent in the past two days.

"Resident Evil's Wii edition has continued to sell well," said Jay Defibaugh, an analyst at Credit Suisse Group in Tokyo who rates Capcom shares "outperform." Sales of the game, known as Biohazard in Japan, will probably exceed Capcom's shipment target of 620,000 units by March 31, he said.

Resident Evil was among the top 10 titles sold in Japan and the U.S. in June.

CFO Kazuhiko Abe gave presentations to investors in New York and Boston last week focusing on new Wii offerings, according to spokesman Ryosuke Tanaka. Capcom is expecting annual sales to rise 11 per cent as it doubles the number of its Wii titles from three to six.

Capcom's stock has risen 33 per cent this year, compared with an 8.8 per cent decline in the Topix index.