What Worked Japan - 11 Nov 2016 - Crazy week but in the end Beta and Value dominated

What Worked – Despite the intraweek rollercoaster, Value and high Beta names did very well this week. Without a doubt the US Presidential Election really messed up daily trading patterns. However at the end of the week Value and particularly high Beta names were the winners. Beta came in with a crazy high 48% IC this week. High Beta names that did well were Dai-Ichi Life (8750) up 17%, Taiheiyo Cement (5233) up 18% and Mitsubishi UFJ (8306) up 16%.

Low PBR names also ended up doing very well this week. T&D Holdings (8795) was up 15%, Mitsubishi Materials (5711) was up 16% and Sumitomo Metal Mining (5713) was up 14%. Quality, particularly high ROE names, were hurt this week. COLOPL (3668) was down 33% and Meiji Holdings (2269) was down 16%. There was also a good selloff in names that were up over the last year. Morinaga (2201) was down 11%, Nichirei (2871) was down 10% and MEGMILK SNOW (2270) was down 9%.

Who Moved – There was no lack of volume this week. 180 out of 500 names in the TOPIX 500 moved on volume. On the positive side, Taiheiyo Cement was up 18%, Shinsei Bank (8303) was up 13% and Sumitomo Mitsui Construction (1821) is up 12%. On the other side, Meiji Holdings (2269) was down 16%, Square Enix was down 15% and Ezaki Glico (2206) was down 15%. Also please note that most of the names mentioned in the first paragraph also moved on strong volume.


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