SUPERCONDUCTOR RESEARCH MAY BOOST TOKYO STOCKS
Research into materials that conduct
electricity with minimal resistance could lead to further gains
on Tokyo's booming stock market, brokers said.
    They said the share prices of companies likely to benefit
from the so-called 'superconductors' rose sharply last week
after publication of articles about the research in the
economic daily Nihon Keizai Shimbun. The companies were in the
non-ferrous metal, electrical and mining sectors.
    But industry analysts said development problems remain and
commercial application is still some years away.
    "The area clearly has significant applications but it won't
be commercially viable for a few years," said Thomas Murtha,
technology analyst with James Capel and Co.
    Industry analysts said the use of superconductors could
bring sharp cuts in electricity costs if present problems can
be overcome.
    Nikko Securities Co Ltd analyst Shinichi Nakayama said
superconductors could have applications in computer circuitry,
electricity generation and storage, and scientific research.
    The superconductors are made of a blend of metals fused in
a heat-firing process similar to that used in ceramics.
    Nakayama said Kawasaki Steel Corp <KAWS.T> predicted in an
in-house study that by 1990 the worldwide market would be worth
150 billion yen for superconductors used in computers, 50
billion for those used in electricity generators and 150
billion for those used in electricity storage.
    The study said that by 1995 there would be trains capable
of 500 km an hour, hovering on a magnetic field and powered
mainly by superconductors. One hundred billion yen worth of
superconducting material would be needed for such a train.
    The Kawasaki study also said superconductors would be used
in nuclear fusion physics, but not until the year 2000.
    Industry analysts said superconductors have no commercial
applications at present. In laboratory tests the conductor must
be cooled by expensive liquid helium or hydrogen before minimum
electrical resistance is achieved, though liquid nitrogen,
which is much less expensive, has recently also been used
successfully, they said.
    Despite this, investors on Tokyo's stock market have
boosted shares of firms related to superconducting materials.
    From the close of trading on March 17 until yesterday's
close, Mitsubishi Mining and Cement Co Ltd's <MIMI.T> share
price rose 140 yen to 485 yen.
    In the same period Mitsubishi Metal Corp <MITM.T>, rose 95
to 745 yen, Sumitomo Metal Mining Co Ltd <TOMM.T> rose 200 to
1440 yen, and Kawasaki Steel rose 15 to 260.
    Furukawa Electric Co Ltd shares <URUT.T> jumped 104 yen to
689 yen, and Fuji Electric Co Ltd <FUJE.T> rose 141 to 619.
    Brokers said shares of suppliers of scientific instruments
needed to conduct the superconductor research also rose.
    Industry analysts said the most favoured superconductor,
made from a blend of yttrium, barium and copper, is currently
undergoing laboratory tests under a scheme coordinated by the
Ministry of International Trade and Industry (MITI).
 REUTER
