Daily BriefsJapan

Daily Brief Japan: TSE Tokyo Price Index TOPIX and more

In today’s briefing:

  • While Raising Profit Margin Isn’t Easy, the Focus Is on Reducing Policy-Shares and Cash on Hand


While Raising Profit Margin Isn’t Easy, the Focus Is on Reducing Policy-Shares and Cash on Hand

By Aki Matsumoto

  • While cash on hand is high, many companies have not been able to improve their return on capital, so more companies are expected to announce shareholder returns, including share repurchases.
  • The change in awareness of companies can be attributed largely to the changing environment of high foreign ownership and TSE requests.
  • Since it takes time to raise the profit margin, and it’s not easy to identify CapEx opportunities, the measures to improve ROE will reduce policy shareholdings and cash on hand.

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