unfavourable economic conditions than the company's new business plan that includes aggressive expansion in emerging markets.

Sony said on Thursday it aimed to double revenues from the fast-growing markets of Brazil, Russia, India and China to ¥2 trillion ($19.5 billion) and invest 1.8 ¥trillion in key businesses and technologies as part of a three-year strategy.

"Sony's shares are not being sold because investors thought the mid-term business plans were negative. The plans are not bad," said Soichiro Monji, chief strategist in the equity management department at Daiwa SB Investments.

"Rather, the US economic outlook and a stronger yen are hurting the electronics sector today, and Sony is among them."

The Japanese maker of PlayStation electronic games and Bravia flat TVs trails Samsung Electronics Co Ltd in the LCD TV market, and is locked in a three-way battle with Microsoft Corp and Nintendo Co in the videogame industry.

Sony shares ended the morning session down 4.0 per cent at ¥4,860, underperforming the Tokyo stock market's electrical machinery index IELEC which lost 2.5 per cent.

Sony's stock had gained 2.8 per cent on Thursday in a virtually flat market amid investor expectations ahead of the announcement of the business plan, which came after the market close.

In the three-year strategy, Sony aims to lift its return on equity (ROE) to 10 per cent from an average of about 6 per cent over the past three years.

It also aims to turn each of its three key businesses of Vaio PCs, Blu-ray disc-related products, and microchips and electronic components into operations worth ¥1 trillion in three years.

Sony already has four businesses that exceed the ¥1 trillion yen mark -- TVs, games, mobile phones and digital imaging, which includes digital cameras and camcorders.

"If the company reaches its ROE target, we think a share price of ¥8,500 would not be out of reach," Goldman Sachs said in a note to clients.

Source:businessspectator