In today’s briefing:
- Is the High Volatility of Japanese Equities Only Due to Their Small Market Capitalization?
- New Corporate Value Up Plans of POSCO Holdings and POSCO International
Is the High Volatility of Japanese Equities Only Due to Their Small Market Capitalization?
- In addition to many manufacturing companies that are sensitive to economic cycles, TSE is also characterized by many companies with sluggish operating cash flow growth.
- Low interest rates in Japan can also be a factor in high volatility. As the volatility of low interest rates increases, corporate value volatility is likely to increase as well.
- Some overseas investors pay attention to the equity spread over JGB yields. As the risk of rising interest rates in Japan increases, they are likely to unwind their futures positions.
New Corporate Value Up Plans of POSCO Holdings and POSCO International
- Both POSCO Holdings (005490 KS) and Posco International Corporation (047050 KS) provided solid, new Corporate Value Up reports.
- However, POSCO International’s plan is much better. POSCO International plans to provide total shareholder returns of 50% which is more than double of its previous total shareholder return plan.
- This sharp increase in shareholder returns is likely to lead to share outperformance of POSCO International relative to the market in the next several months.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
