What Worked Japan - 10 Jun 2016 - Value continues to suffer and high ROE names benefited

What Worked – Overall,  Value did not do well this week, but more specifically low PBR names really took a hit. JTEKT Corp was down 9%, NTN Corp was down 8% and Mitsui Engineering & Shipbuilding was down 7%. PBR has not consistently worked well since May 2015. While Value names suffered this week, high ROE names did well. COLOPL was up 19%, Pigeon Corp was up 13% and Idemitsu Kosan was up 9%.

Since the middle of January this year, high ROE names have consistently outperformed.  For the second week in a row, high Beta names were beaten up. Japan Exchange was down 9%, Chugoku Bank was down 7% and NSK Ltd was down 7%. Looking at price momentum, names down over the last year continued to go down this week. Daicel Corp was down 9%, NSK was down 7% and Seven Bank was down 6%.

Who Moved – Only 14 names moved on volume this week. On the positive side, COLOPL was up 19% and Pigeon Corp was up 13%. On the other side, Japan Exchange was down 9% and Seven Bank was down 6%.


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