What Worked Japan - 12 May 2017 - Selloff in low PBR and high Beta names and into Quality

What Worked

There was a selloff in high Beta and Value, particularly low PBR, names this week. Low PBR names that went down this week were Isetan Mitsukoshi (3099) down 10%, Hitachi Zosen (7004) down 11% and Shinsei Bank (8303) down 8%. High Beta names that were also hurt were Subaru (7270) down 8%, Taiyo Nippon Sanso (4091) down 8% and Konica Minolta (4902) down 7%.

Quality names and to a lesser degree large-cap names benefited from the rotation away from Beta and Value. High ROE names that did well this week were COLOPL (3668) up 12%, Zenkoku Hosho (7164) up 11% and Start Today (3092) up 12%.

Who Moved

Strong volume week. 101 names moved on more than 1 standard deviation of volume. The volume spikes look to be spread relatively evenly across all sectors. On the positive side, Benesse Holdings (9783) is up 18%, Mitsubishi Tanabe Pharma (4508) is up 11% and IHI Corp (7013) is up 10% On the other side, Kakaku.com (2371) is down 8%, Meitec Corp is down 7% and Asahi Glass (5201) is down 6%. Isetan Mitsukoshi and Subaru mentioned above also moved on strong volume.


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