Daily Brief Japan: SBI Shinsei Bank, Nikkei 225, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

Last Week In SPACE: Shinsei Bank, Warrego Energy, Korean Bank Activism, Japfa
EQD | NKY Index: Equity Vol Has yet to React to Increased Bond Vol. Use Current Lull to Pick up Vega
More Effective for a Company to Show Background when It Raises Its Dividend Outlook

Last Week In SPACE: Shinsei Bank, Warrego Energy, Korean Bank Activism, Japfa

SBI Holdings (8473 JP) is still expected to buy out SBI Shinsei Bank (8303 JP) minorities sooner rather than later
Not one to rest on its laurels, Hancock immediately bumped its Offer for Warrego Energy (WGO AU) to A$0.36/share, up from A$0.28/share, provided it gets to 40%. We need more popcorn.
APCM reckons Korean banks can pay out more than 50% of net income to their shareholders annually.

JGB band shifting has been unable to calm down Fixed Income markets
The BOJ is being forced to intervene in both bond and currency markets due to a pick-up in volatility
Equity vol has yet to react and we see an opportunity to pick-up some gamma/vega

This fiscal year, total dividends paid haven’t increased compared to recovering total net profit. Consequently, the dividend payout ratio has fallen to the low 30% level, normal level for FY2020.
The correlations of market capitalization to net profit and to dividends paid both declined from those of the past 10 years, indicating lack of confidence in profits in year ahead.
Simply raising the dividend has limited effect on stock price increases. Given that the dividend payout ratio has declined, companies are required to explain how they are using their cash.

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