TOKYO: Japan’s Nikkei share average surrendered early gains to end lower on Friday, posting its first weekly drop after 10, as investors booked profits ahead of an expected rush in sell-off at the end of the month for portfolio rebalancing.

The Nikkei index fell 1.45% to close at 32,781,54, after rising as much as 0.8% earlier. The index is down 2.7% for the week and posted its first weekly loss in 11 weeks.

The broader Topix slipped 1.38% to 2,264.73.

“Investors bought shares initially after the market fell sharply in the previous session,” said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.

“But they became cautions about possible sell-offs toward the end of the month, as pension funds try to rebalance their portfolios. Selling power outweighed buying force.”

Nikkei reverses course to end higher on bargain-buying; SoftBank leads

Uniqlo brand owner Fast Retailing fell 2.38% and was the biggest drag to the Nikkei. Technology investor SoftBank Group lost 2.39% and silicon wafer maker Shin-Etsu Chemical dropped 1.62%.

Trading firms lost 3.38% to become the worst-hit sector among the Tokyo Stock Exchange’s 33 industry sub-indexes.

The index gained nearly 18% this month after billionaire Warren Buffett raised his stakes in the sector.

Mitsubishi Corp lost 4.38%, Marubeni slipped 3.42% and Itochu lost 3.96%.

Utilities rose 1.23% to become the one of the two sectors in positive territory, with Tokyo Electric Power Holdings jumping 6.31% to become the top gainer on the Nikkei.

Drugmaker Eisai rose 2.47% and sake brewer Takara Holdings advanced 2.35%.

Of the 225 Nikkei components, 32 stocks rose, while 191 fell, with two trading flat.