Short selling in Japan on the up
20 June 2013 London
Image: Shutterstock
Short selling in Japanese equities showed signs of increasing in the last week of May as they moved into bear market territory amid concerns the US Federal Reserve will begin to taper its bond buying programme and the Bank of Japan will hold monetary policy where it is, according to Karl Loomes, market analyst at SunGard Astec Analytics.
Astec Analytics statistics show that borrowing of Japanese equities has been on the increase "even as the benchmark Nikkei has been sliding lower".
Loomes said: "While the Nikkei has lost around 21 percent of its value since 23 May, our data shows equity borrowing has increased 10 percent, hinting that those on the short side may still be expecting further declines in the Japanese market."
"Despite this however, compared to borrowing levels over the past 12 months, the current volume still falls far short of previous peaks. Some hope that despite near-terms concerns, comparatively speaking the outlook may not be entirely gloomy."
Astec Analytics statistics show that borrowing of Japanese equities has been on the increase "even as the benchmark Nikkei has been sliding lower".
Loomes said: "While the Nikkei has lost around 21 percent of its value since 23 May, our data shows equity borrowing has increased 10 percent, hinting that those on the short side may still be expecting further declines in the Japanese market."
"Despite this however, compared to borrowing levels over the past 12 months, the current volume still falls far short of previous peaks. Some hope that despite near-terms concerns, comparatively speaking the outlook may not be entirely gloomy."
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
