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>The percentage of shares held by individuals and trust banks fell from 17.6% to 16.9% and from 22.6% to 22.1%, respectively. Increasing individual investors' investment in Japanese equities isn't easy.</li>
<li>The presence of overseas investors will increase, as the percentage of shares held by foreigners, which has reached a record high, is expected to remain high in the future.</li>
<li>The percentage of shares held by corporations decreased slightly, and cross-shareholdings are gradually being unwound. The gradual decline is likely to continue in the future.</li>
</ul>


The percentage of shares held by individuals and trust banks fell from 17.6% to 16.9% and from 22.6% to 22.1%, respectively. Increasing individual investors' investment in Japanese equities isn't easy.
The presence of overseas investors will increase, as the percentage of shares held by foreigners, which has reached a record high, is expected to remain high in the future.
The percentage of shares held by corporations decreased slightly, and cross-shareholdings are gradually being unwound. The gradual decline is likely to continue in the future.


Foreign Ownership, Which Has Reached a Record High of 31.8%, Will Continue to Play a Major Role

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>We are seeing snap-back rallies in the largest global economies -- notably the U.S. and Japan, and also Europe to a lesser extent. However...</li>
<li>We're expecting to see lower highs develop at prior breakdown levels at 2690-2700 on the TOPIX and 4884 on the EURO STOXX 50, which are significant resistance levels.</li>
<li>Watching SPX resistance at 5585, or possible test of YTD highs/marginal new high, all fitting with our ongoing belief (since July 25) that ACWI-US going through 1-to 4-month pullback/consolidation.</li>
</ul>


We are seeing snap-back rallies in the largest global economies -- notably the U.S. and Japan, and also Europe to a lesser extent. However...
We're expecting to see lower highs develop at prior breakdown levels at 2690-2700 on the TOPIX and 4884 on the EURO STOXX 50, which are significant resistance levels.
Watching SPX resistance at 5585, or possible test of YTD highs/marginal new high, all fitting with our ongoing belief (since July 25) that ACWI-US going through 1-to 4-month pullback/consolidation.


MSCI ACWI Consolidation Continues; Outlook Remains Neutral; Buys Across Defensives & Other Sectors

<ul>
<li>The government's goal of "30% women in management positions by 2030" should be included by a bill to be submitted to the ordinary Diet session in 2025.</li>
<li>The bill should include specific measures to provide government support to companies that created environment in which women can give birth and raise children without having to leave their jobs.</li>
<li>Not only is the value of the goods and services from the women's perspective overlooked, as well as the underutilization of human resources from about half of the universes.</li>
</ul>


The government's goal of "30% women in management positions by 2030" should be included by a bill to be submitted to the ordinary Diet session in 2025.
The bill should include specific measures to provide government support to companies that created environment in which women can give birth and raise children without having to leave their jobs.
Not only is the value of the goods and services from the women's perspective overlooked, as well as the underutilization of human resources from about half of the universes.


Will Mandatory Reporting of the Ratio Alone Lead to Higher Ratio of Women in Managerial Positions?

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Cross Asset Strategy

<ul>
<li>JPY sensitive names and foreigner favourites are unlikely to be the next driver of the market.</li>
<li>Sectors not dependent on a weak Japanese Yen are more likely to be the next winners</li>
<li>While individual stocks will still benefit from corporate governance reforms, a rising tide will not lift all boats as it has done over the last 18 months</li>
</ul>


JPY sensitive names and foreigner favourites are unlikely to be the next driver of the market.
Sectors not dependent on a weak Japanese Yen are more likely to be the next winners
While individual stocks will still benefit from corporate governance reforms, a rising tide will not lift all boats as it has done over the last 18 months


Sectors to Look at for the Japanese Stockmarket's Next Phase

<ul>
<li>TSE growth market, which institutional investors distance themselves from due to its low liquidity, is a market where gamblers who focus on price movements gobble up one IPO after another.</li>
<li>To convert users from gamblers to investors, companies with long-term growth potential should be listed. Raising the market capitalization criteria for Growth Market could improve the quality of IPOs.</li>
<li>Meanwhile, in order to improve the quality of the TSE Growth Market, existing listed companies should consider going private through an MBO.</li>
</ul>


TSE growth market, which institutional investors distance themselves from due to its low liquidity, is a market where gamblers who focus on price movements gobble up one IPO after another.
To convert users from gamblers to investors, companies with long-term growth potential should be listed. Raising the market capitalization criteria for Growth Market could improve the quality of IPOs.
Meanwhile, in order to improve the quality of the TSE Growth Market, existing listed companies should consider going private through an MBO.


Smaller PE Funds May Have Opportunities to Invest in MBOs of TSE Growth Market Companies

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)

Foreign Ownership, Which Has Reached a Record High of 31.8%, Will Continue to Play a Major Role

I would like to discuss the issues on the summary of the document "Results of the Survey of Stock Distribution in FY2023" disclosed by the TSE on...

Metrical Inc

MSCI ACWI Consolidation Continues; Outlook Remains Neutral; Buys Across Defensives & Other Sectors

MSCI $ACWI Consolidation Continues; Outlook Remains Neutral; Snap-Back Rallies in Japan $Nikkei $TOPIX, U.S. $SPX, Europe $STOXX fits with our view...

Vermilion Research

Will Mandatory Reporting of the Ratio Alone Lead to Higher Ratio of Women in Managerial Positions?

I would like to discuss the issues on the June 27 Nikkei article, "Companies with 301 or more employees must disclose ratio of female managers."

Metrical Inc

Sectors to Look at for the Japanese Stockmarket's Next Phase

JPY sensitive names and foreigner favorites may not drive the market; sectors independent of a weak Yen could be the next winners.

Rikki Malik

Smaller PE Funds May Have Opportunities to Invest in MBOs of TSE Growth Market Companies

I would like to discuss the issues on the June 24 Nikkei article, "TSE Growth Market Shrinking, IPOs Smaller, Drivers Long Absent."

Metrical Inc

Foreign Ownership, Which Has Reached a Record High of 31.8%, Will Continue to Play a Major Role

I would like to discuss the issues on the summary of the document "Results of the Survey of Stock Distribution in FY2023" disclosed by the TSE on...

Metrical Inc

MSCI ACWI Consolidation Continues; Outlook Remains Neutral; Buys Across Defensives & Other Sectors

MSCI $ACWI Consolidation Continues; Outlook Remains Neutral; Snap-Back Rallies in Japan $Nikkei $TOPIX, U.S. $SPX, Europe $STOXX fits with our view...

Vermilion Research

Will Mandatory Reporting of the Ratio Alone Lead to Higher Ratio of Women in Managerial Positions?

I would like to discuss the issues on the June 27 Nikkei article, "Companies with 301 or more employees must disclose ratio of female managers."

Metrical Inc

Sectors to Look at for the Japanese Stockmarket's Next Phase

​JPY sensitive names and foreigner favorites may not drive the market; sectors independent of a weak Yen could be the next winners.

Rikki Malik

Smaller PE Funds May Have Opportunities to Invest in MBOs of TSE Growth Market Companies

I would like to discuss the issues on the June 24 Nikkei article, "TSE Growth Market Shrinking, IPOs Smaller, Drivers Long Absent."

Metrical Inc

JPY sensitive names and foreigner favorites may not drive the market; sectors independent of a weak Yen could be the next winners.