What Worked – After last week’s strong bounce in Beta and Value, this week we saw a moderate selloff in Value and a slight move back into Retail names. Since the middle of October last year we see that PE has one strong week followed by a month or so of underperformance. If that holds true this time we have two more weeks of Value hurting. The last time that PE consistently did well was back in April/May of 2015. Low PE names that did not do well this week were Nippon Shokubai down 11%, Shinsei Bank down 9% and Mitsubishi Gas Chemical down 8%. Retail names that bounced back were Aiful up 10%, Softbank up 10% and Fujikura also up 10%.
Who Moved – Compared to last week, volume really dried up. Only 26 names moved on strong volume, which is about normal for Japan. On the positive side, Central Glass was up 21%, Unipres was up 16% and Trend Micro was up 16%. On the other side, ABC-Mart was down 5%, Temp Holdings was down 4% and Inpex was down 4%.
PDF Report available here: Download