What Worked Japan - 22 Apr 2016 - Value continued to do well but was not supported by Volume

What Worked – Basically everything that worked last week continued to work this week but to a slightly lesser degree. Value continued to be very strong with PBR leading the way. However PBR went from an incredibly strong information coefficient (IC) of 43% to just a very strong 30% IC. PBR has not worked two weeks in a row since last August. Low PBR names that did well this week are Idemitsu Kosa up 15%, Nippon Sheet Glass up 11% and Mitsui Mining and Smelting up 9%.  Names that were up over the last week continued to run this week.

Beta also continued to do well this week. As with Value it has been a long time since Beta has worked two weeks in a row. High Beta names that did well were Nippon Paint Holdings was up 15%, Kubota Corp was up 12% and Asics Corp was up 10%. We also saw a continued selloff in names with a high % of Retail Investors. Mitsubishi Motors was down 40%, GS Yuasa was down 11% and Kaken Pharma was down 9%.

Who Moved – However, as with last week Volume is not driving the market. Only 10 names moved on volume this week. On the positive side, Idemitsu Kosa was up 15%, Showa Shell Sekiyu was up 13% and Penta-Ocean Construction was up 6%. On the other side, Mitsubishi Motors was down 40%, KONAMI was down 6% and Yaskawa Electric was down 4%. All on strong volume.


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