What Worked Japan - 20 May 2016 - PBR and Beta worked / Hopefully they will continue to work

What Worked – With Earnings basically over this week, we got back to traditional factors driving the Japan market. Low PBR and PE names did well this week. However, PBR has only had two consecutive positive weeks once since last September. Low PBR names that did well this week were Sumitomo Bakelite up 19%, Sumitomo Electric Industries up 18% and Chugoku Bank up 14%. High Beta names also did well this week.

Beta has also had a hard time since last October. Beta really has only worked 5 times since then. High Beta names that outperformed this week were Alps Electric was up 11%, Fukuoka Financial was up 11% and Taiyo Yuden was up 10%. On the other side, we saw a selloff in high ROE names this week. Toyo Tire & Rubber was down 20%, Sohgo Security Services was down 11% and CALBEE was down 8%.

Who Moved – Very good volume this week with 31 names spiking up and 23 names spiking down on strong volume. On the positive side, Sumitomo Bakelite spike up 19%, Sumitomo Electric Industries spiked up 18% and Shiseido Company spiked up 14%. On the other side,  Toyo Tire & Rubber spiked down 20%, Sohgo Security Service spiked down 11% and Marui spiked down 11%. All on strong volume.


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