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16 Apr 2013
Forex Flash: Large net selling of toshins due to profit-taking - Nomura
FXstreet.com (Barcelona) - Nomura strategist Yujiro Goto notes that there have been large net selling of toshins due to profit taking as Japanese investors are estimated to have sold JPY254 bln of foreign currency denominated toshins last week according to NRI.
He sees that this is the first net selling in three weeks, and this is the biggest weekly net selling since at least 2008 when the data is available for, He adds that Toshin companies became net buyers of foreign assets in March for the first time in five months, but recent acceleration in JPY weakness encouraged retail investors to lock in profits, in his view. He writes, “In addition, retail investors may prefer domestic risky assets, especially Japanese equities to foreign assets as the economic outlook has been improving significantly. Even though we expect toshin momentum to recover gradually, there may have to be more net selling due to profit-taking before a clear pick-up in the momentum.”
He sees that this is the first net selling in three weeks, and this is the biggest weekly net selling since at least 2008 when the data is available for, He adds that Toshin companies became net buyers of foreign assets in March for the first time in five months, but recent acceleration in JPY weakness encouraged retail investors to lock in profits, in his view. He writes, “In addition, retail investors may prefer domestic risky assets, especially Japanese equities to foreign assets as the economic outlook has been improving significantly. Even though we expect toshin momentum to recover gradually, there may have to be more net selling due to profit-taking before a clear pick-up in the momentum.”