What Worked Japan - 28 Apr 2017 - Low PE and High Beta names continue to do well

What Worked

Only 44 names in TOPIX 500 were down this week. However, there was a clear rotation away from names up over the last month into underperforming names. Izumi (8273) is down 2%, Peptidream (4587) is down 0.4% and Kyowa Hakko Kirin (4151) is up just 1%. Low PE names continue to outperform. This is the third week in a row that low PE names have done well. Showa Denko (4004) is up 22%, Tokuyama Corp (4043) is up 14% and Alps Electric (6770) is up 11%.

High Beta names also have down well in the last 3 weeks after 2 months of underperformance. Daido Steel (5471) is up 20%, Ibiden (4062) is up 16% and IHI Corp (7013) is up 12%. Names with a high % of Institutional Investors also outperformed this week. DMG Mori (6141) is up 11% and Capcom (9697) is up 9%.

Who Moved

32 names moved on volume this week. On the positive side, Showa Denko (4004) is up 22%, Daido Steel (5471) is up 20% and OBIC (4684) is up 12% all on strong volume. On the other side, ITO EN (2593) is down 1.5%, LINE (3938) is down 1% and Park24 (4666) is down 1%.

Summary

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