What Worked Japan - 10 Feb 2017 - Beta and Price Momentum continue to drive the market

What Worked – High Beta and short-term (3-month) momentum names continued to do well this week. Over the last month, these two factors have driven the market. High Beta names that outperformed this week were Ibiden (4062) up 20%, Asahi Glass (5201) up 10% and Taiyo Yuden (6976) up 9%. Momentum names that did well this week were Disco (6146) up 19%, Yahoo Japan (4689) up 17% and Nippon Electric Glass (5214) up 12%.

Low PBR names also did well this week. Low PBR name have not done this well since the end of November last year. Other Value factors were pretty much insignificant this week. Low PBR names that outperformed were Kobe Steel (5406) up 9% and Sankyo (6417) up 7%. Growth continued to not work. Growth factors have consistently not done well since the middle of December last year. Yamaha (7951) is down 12% and Teijin Limited (3401) is down 8%. ROE / ROIC names also continue to not do well this year.

Who Moved – 42 names moved on volume this week. On the positive side, Ibiden Co (4062) is up 20%, Disco (6146) is up 19% and Yahoo Japan (4689) is up 17%. On the other side, Yamaho (7951) is down 12%, Teijin Limited (3401) is down 8% and Kaneka Corp (4118) is down 7%.


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