Midsummer's Hell Heat (JAPAN) - Complete
Focus on the Nikkei VI and VIX Index
Individual investors' credit buybacks reached an 18-year high in July
It seems that it will take a little longer for the market to stabilize - Mr. Ichikawa of Sumitomo Mitsui DS
There is a high possibility that credit buybacks of individual investors that have accumulated up until now in response to a sharp drop in Japanese stocks were pressured to be consolidated, further accelerating the decline in market prices.
The rate of decline in the TSE stock price index (TOPIX) compared to the previous weekend temporarily exceeded 12%, while Mitsubishi Heavy Industries temporarily fell 18% and Sumitomo Mitsui Financial Group temporarily fell 16%, respectively. In response to an extraordinary decline, there is a view from market participants that there are speculations from investors who had buying positions through margin trading.
Credit buybacks of individual investors reached a high level for the first time in 18 years in late July, even as the Nikkei Stock Average fell from a record high. When the stock price falls more than expected, investors who purchased stocks through margin trading are forced to resolve their buying positions in preparation for loss unless they have sufficient funds to pledge additional margin.
Strategist Itoshima Takatoshi of Pictet Japan pointed out that “if you look at individual stocks, there are sales that can be seen as margin trading throwing, and individual investors are hurt.” Although there is a possibility that the selling climax has been reached in the short term, he said there is still no confirmation. The fire of 4.9 trillion yen in Japanese stocks is at a high level for the first time in 18 years left over from credit buybacks - market price disturbance alert
In response to expectations for wage increases and economic growth, Japanese investors have become more active in investing in stocks than before. This trend was also strengthened by the new Small Investment Tax Exemption System (NISA) that the government began this year. While the Nikkei Average is writing off year-to-date increases, it will be tested whether new investment motivation for domestic stocks will be continuously created among individual Japanese investors due to entering a bear market that falls 20% from high prices.
Ichikawa Masahiro, chief market strategist of Sumitomo Mitsui DS Asset Management, stated that “people with little investment experience have never experienced such a large depreciation, so the shock may be quite large,” and expressed the view that “it will take a little longer for the market to stabilize.”
It seems that it will take a little longer for the market to stabilize - Mr. Ichikawa of Sumitomo Mitsui DS
There is a high possibility that credit buybacks of individual investors that have accumulated up until now in response to a sharp drop in Japanese stocks were pressured to be consolidated, further accelerating the decline in market prices.
The rate of decline in the TSE stock price index (TOPIX) compared to the previous weekend temporarily exceeded 12%, while Mitsubishi Heavy Industries temporarily fell 18% and Sumitomo Mitsui Financial Group temporarily fell 16%, respectively. In response to an extraordinary decline, there is a view from market participants that there are speculations from investors who had buying positions through margin trading.
Credit buybacks of individual investors reached a high level for the first time in 18 years in late July, even as the Nikkei Stock Average fell from a record high. When the stock price falls more than expected, investors who purchased stocks through margin trading are forced to resolve their buying positions in preparation for loss unless they have sufficient funds to pledge additional margin.
Strategist Itoshima Takatoshi of Pictet Japan pointed out that “if you look at individual stocks, there are sales that can be seen as margin trading throwing, and individual investors are hurt.” Although there is a possibility that the selling climax has been reached in the short term, he said there is still no confirmation. The fire of 4.9 trillion yen in Japanese stocks is at a high level for the first time in 18 years left over from credit buybacks - market price disturbance alert
In response to expectations for wage increases and economic growth, Japanese investors have become more active in investing in stocks than before. This trend was also strengthened by the new Small Investment Tax Exemption System (NISA) that the government began this year. While the Nikkei Average is writing off year-to-date increases, it will be tested whether new investment motivation for domestic stocks will be continuously created among individual Japanese investors due to entering a bear market that falls 20% from high prices.
Ichikawa Masahiro, chief market strategist of Sumitomo Mitsui DS Asset Management, stated that “people with little investment experience have never experienced such a large depreciation, so the shock may be quite large,” and expressed the view that “it will take a little longer for the market to stabilize.”
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