Toshiba falls most in four weeks after reporting loss

Toshiba Corp. shares fell the most in four weeks in Tokyo trading as a narrower second-quarter loss failed to ease speculation the stock is expensive relative to the company’s earnings prospects.

Shares of the chipmaker sank 4.6 per cent to 519 yen at the market close in Tokyo, the most since Sept. 28. The stock has slumped 7.3 per cent in the past two days, paring its six-month rally to 60 percent. Its 14-day relative strength index rose to 71 on Oct. 26, above the 70 level some investors view as a signal to sell. “The decline today is probably due to profit taking,” said Yukihiko Shimada, a Tokyo-based analyst at Mitsubishi UFJ Securities Co. in Tokyo who has an “outperform” rating on Toshiba. “There was nothing particularly negative about the earnings numbers.”