What Worked Japan - 02 Sep 2016 - Value and Beta very strong after a good month in August

What Worked – Value did very well this week. PBR names came in with an over 50% IC this week. PBR has not been consistently strong since February 2015, however recently PBR has worked 6 out of the last 8 weeks. Low PBR names that did well were Iyo Bank (8385) up 17%, Tokyo Electric Power Company (9501) up 19% and Juroku Bank (8356) up 16%. Low PE names also continued to do well this week. Low PE names have outperformed since the beginning of August. Joyo Bank (8333) is up 15%, Unipres Corp (5949) is up 13% and Chiba Bank is up 13%.

As with Value, high Beta names did very well in August and this last week. Beta has not consistently done this well in the last 2 years. High Beta names that did well were Minebea (6479) up 14%, Hyakugo Bank (8368) was up 14% and Dai-Ichi Life Insurance was up 13%. Names down over the last year bounced nicely this week, particularly in the Banks sector. Gunma Bank (8334) is up 14% and Bank of Kyoto (8369) is up 13%. There has been a clear shift away from Growth and into Value/Beta since the beginning of August. COSMOS Pharma (3349) was down 7% and Square Enix was down 5%

Who Moved – Only 21 names moved on volume this week. Banks and Retail names made up almost half of the volume spikes. Iyo Bank (8385) is up 17%, Tokyo Electric Power Company (9501) is up 19% and Juroku Bank (8356) is up 16%. On the other side, AEON Financial Service (8570) is down 9%, CALBEE is down 9% and Lawson (2651) was down 8%.

Summary

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