Founder & Chief Market Strategist - SAV Markets, SAV Markets

Shyam Devani

Founder & Chief Market Strategist - SAV Markets

Provide Comprehensive Analysis & Commentary

SAV Markets

SAV Markets aims to provide comprehensive analysis & commentary on foreign exchange and asset markets. The approach is multi asset as markets are typically interlinked. Cause and effect are always at work, even if those effects take time to manifest. As nothing is permanent we strive to get ahead of the curve in an ever changing world.

Technical Analysis

TSE Tokyo Price Index TOPIX / Technical Analysis

<ul>
<li>The Topix Index is approaching important levels at 1,838-1,849 which should be watched closely</li>
<li>If other developments on the Nikkei 225 are any indication then we are going to see a bearish break</li>
<li>A close below that zone opens the way for a move towards 1,720 which is another 7% below current levels</li>
</ul>


The Topix Index is approaching important levels at 1,838-1,849 which should be watched closely
If other developments on the Nikkei 225 are any indication then we are going to see a bearish break
A close below that zone opens the way for a move towards 1,720 which is another 7% below current levels


Japan’s Topix Index Looking for the Exit Door

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

<ul>
<li>An article in Nikkei reported that "Of the 1,840 companies listed on the prime market, 230, or 13%, published their Annual Securities Reports published in English.</li>
<li>The disclosure of Annual Securities Reports and Corporate Governance Reports in English has been terribly slow. These reports were disclosed in English would greatly help foreign investors understand individual companies.</li>
<li>These reports, which contain information necessary for the valuation of a company, in English will be difficult to achieve until they become mandatory or are specifically designated as documents.</li>
</ul>


An article in Nikkei reported that "Of the 1,840 companies listed on the prime market, 230, or 13%, published their Annual Securities Reports published in English.
The disclosure of Annual Securities Reports and Corporate Governance Reports in English has been terribly slow. These reports were disclosed in English would greatly help foreign investors understand individual companies.
These reports, which contain information necessary for the valuation of a company, in English will be difficult to achieve until they become mandatory or are specifically designated as documents.


Japan's Governance: About the Article on the Limited Information Disclosure Published in English

<ul>
<li>The logic that "the stock prices of companies listed on the TSE 1st Section that chose the Standard Market have risen more" is not sufficiently explained. </li>
<li>I have doubts about the writer's logic that "the Corporate Governance Code is obsolete and companies will stop thinking according to it although there are many issues on CG Code.</li>
<li>I would like to add a few things because I sometimes feel that there are some misunderstandings when I talk to companies on capital allocation for shareholder return or investments.</li>
</ul>


The logic that "the stock prices of companies listed on the TSE 1st Section that chose the Standard Market have risen more" is not sufficiently explained. 
I have doubts about the writer's logic that "the Corporate Governance Code is obsolete and companies will stop thinking according to it although there are many issues on CG Code.
I would like to add a few things because I sometimes feel that there are some misunderstandings when I talk to companies on capital allocation for shareholder return or investments.


Japan's Governance: About the Article on Corporate Governance Code

<ul>
<li>The highest hurdle for companies that don’t meet the listing criteria is tradable market capitalization. The expiration for transitional measures that allow the company to maintain its listing is unknown.</li>
<li>The highest hurdle for companies that don’t meet the listing criteria is tradable market capitalization. The expiration for transitional measures that allow the company to maintain its listing is unknown.</li>
<li>On October 7, TSE will disclose which companies will have their TOPIX ratios reduced. For companies with insufficient market capitalization, this is an urgent issue that needs to be resolved.</li>
</ul>


The highest hurdle for companies that don’t meet the listing criteria is tradable market capitalization. The expiration for transitional measures that allow the company to maintain its listing is unknown.
The highest hurdle for companies that don’t meet the listing criteria is tradable market capitalization. The expiration for transitional measures that allow the company to maintain its listing is unknown.
On October 7, TSE will disclose which companies will have their TOPIX ratios reduced. For companies with insufficient market capitalization, this is an urgent issue that needs to be resolved.


Japan's Governance: TSE Market Reclassification: Results of Selection of New Market Segments

<ul>
<li>Companies that raised the % independent directors in 2021 improved both the nominating committee and compensation committee scores. This is in line with specific requirements of the revised CG Code.</li>
<li>Other than the percentage of independent directors, there were no changes in board practice measures that were positively correlated with significance affecting changes in other criteria.</li>
<li>I will examine whether passive events, such as revision of CG Code, will motivate companies to further improve their governance, or whether more companies will actively improve their governance.</li>
</ul>


Companies that raised the % independent directors in 2021 improved both the nominating committee and compensation committee scores. This is in line with specific requirements of the revised CG Code.
Other than the percentage of independent directors, there were no changes in board practice measures that were positively correlated with significance affecting changes in other criteria.
I will examine whether passive events, such as revision of CG Code, will motivate companies to further improve their governance, or whether more companies will actively improve their governance.


Japan's Governance: How Far Has Corporate Governance Improved in 2021 (5) - Change in ％ of INEDs

Japan

The TOPIX, also known as the Tokyo Stock Price Index, is a capitalization-weighted index of all companies listed on the First Section of the Tokyo Stock Exchange. The index is supplemented by the subindices of the 33 industry sectors. The index calculation excludes temporary issues and preferred stocks, and has a base value of 100 as of January 4, 1968.

TSE Tokyo Price Index TOPIX (TPX INDEX)

Japan’s Topix Index Looking for the Exit Door

Japan's Topix Index seems to be the next market to take a hit, especially if we manage to get below 1838. The risk here is for another 7% drop if &...

Shyam Devani

Japan's Governance: About the Article on the Limited Information Disclosure Published in English

Nikkei Shimbun reported an article "article on the limited disclosure of 10% of the Annual Securities Reports published in English by companies...

Metrical Inc

Japan's Governance: About the Article on Corporate Governance Code

On January 21, the Nikkei Shimbun published an article titled "Can companies think through the dangers of simply following governance guidelines? I...

Metrical Inc

Japan's Governance: TSE Market Reclassification: Results of Selection of New Market Segments

Lately, TSE released "Results of the Selection of New Market Segments by Listed Companies." This article will review the results based on its...

Metrical Inc

Japan's Governance: How Far Has Corporate Governance Improved in 2021 (5) - Change in ％ of INEDs

In 2021, the companies improved the % independent directors and nomination and compensation committees, which are specific requirements for...

Metrical Inc