In today’s briefing:
- TOPIX October 2022 Rebal – Buy/Sell Baskets (May the Flow Be Ever In Your Favour)
- Hitachi Ltd. (6501 JP): Downside Risk in Recession
TOPIX October 2022 Rebal – Buy/Sell Baskets (May the Flow Be Ever In Your Favour)
- As a follow-on to TOPIX October 2022 Rebal – BIG Names with BIG Flows which discussed ¥2.1trln a side flows overall, this insight analyses and proposes intra-sector baskets.
- In general, the sector-neutral BUYs vs SELLs baskets of all names where Index Shares change by 10% or more have seen BUYs sharply outperform SELLs in the past three weeks.
- Look for pre-positioning unwinds so trading BUY vs SELL baskets which have bucked the trend, banks and chemicals – might be worthwhile. Otherwise, pick your spots. Use the flow.
Hitachi Ltd. (6501 JP): Downside Risk in Recession
- Diversified across sectors and regions, Hitachi Ltd. is a proxy for the global economy going into recession.
- Restructuring nearly complete, but little margin expansion so far. DX revenues growing rapidly, but more profit supporter than driver.
- Weak 1Q and worsening economic situation casts doubt on FY Mar-23 guidance.
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