What Worked Japan - 25 Mar 2016 - Value was hurt and Size/Quality Benefited

What Worked While really nothing stood out last week, as for direction this week was only slightly better. There was a slight selloff in Value names and a move into Quality this week. Low FY1 PE names that did poorly were Kaken Pharma down 14%, Nippon Kayaku down 11% and DMG Mori down 10%. High ROE names that outperformed were COLORPL up 15%, Kakaku.com up 11% and Matsumotokiyoshi up 8%. Negative momentum looks to be one of the  strongest factor currently driving the market.

Names that went down over the last year continued to go down this week. Sharp was down 12% after being down 41% over the last year, Nippon Kayaku was down 11% and Sumco was down 9%. We also saw a move into Retail names and a slight move away from high Beta and large-cap names. High Retail names that did well were Kokuyo up 10%, OKI Electric Industries up 8% and Tsuruha up 8%. High Beta names that were hurt were Seiko Epson down 9% and Unipres Corp down 8%.

Who Moved Only 15 names moved on volume this week and the majority of the names were down. Only three of the fifteen names move up on volume this week. Morinaga Milk was up 10%, Sangetsu was up 4% and Sumitomo Forestry was flat on the positive side. On the other side, Kaken Pharma was down 14%, Nippon Kayaku was down 11% and NOF Corp was down 5% all on strong volume.

Summary

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