What Worked Japan - 19 May 2017 - Value and Beta hurt for the second week in a row

What Worked

Value and high Beta names were hurt for the second week in a row. High Beta and low PBR names did poorly this week and the last after 1 month of outperformance. Before that both factors underperformed for 5 weeks straight. Low PBR names that were hurt were Idemitsu Kosan (5019) down 11%, Japan Petroleum Exploration down 10% and Central Glass (4044) down 10%.

High Beta names that went down were NTN Corp (6472) down 14%, Mitsubishi UFJ Lease & Finance (8593) down 9% and NSK (6471) down 9%. Names with a high ROE and to a lesser degree names with a high percent of Retail Investors benefited from the selloff in Value. Leopalace21 (8848) is up 9%, Toyo Tire & Rubber is up 9% and Toda Corp (1860) is up 7%.

Who Moved

101 names moved on volume this week. All the volume spikes look to be spread relatively evenly across all sectors. On the positive side, Nomura Real Estate (3231) is up 20%, Miura (6005) is up 10% and Shiseido (4911) is up 9%. On the other side, including the names mentioned above Isuzu Motors (7202) is down 11%, Japan Steel Works (5631) is down 10% and Hitachi Zosen (7004) is also down 9%.

Summary

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