Japanese stock alert

JAP

Morning Alert: Mitsubishi UFJ Financial decreases 0.5%, leads Bank sector lower 27 July 2017 10:56 JST

NEWS BITES - JAPAN

Mitsubishi UFJ Financial Group Inc. (TO:8306) has decreased 0.5% to trade at JPY708.0 vs. the Bank sector which weakened 34.6 points (or 0.4%) to 9,543.8. Representing a weighting of about 22.7% of the sector, the stock accounted for 31.9% of today's loss. The shares have underperformed 83% of the market in the past week. Trading volume was 80% of average so far today.

SECTION 1: The past week

Current indications of bearish signals that support the trend in the unusual trading

1.1 At a glance

Weekly: Mitsubishi UFJ Financial keeps sliding: down 7.1% in 3 weeks July 26, 2017 15:00 JST

Mitsubishi UFJ Financial Group Inc. (TO:8306), Japan's largest Bank by market cap, extended its slide in the past week ended Wednesday, shedding an additional JPY6.40 (or 0.9%) to close at JPY711.60. The shares have tumbled JPY54.60 (or 7.1%) over the past three weeks. Compared with the Nikkei 225 Index which fell 31.5 points (or 0.2%) in the three weeks, this represented a relative price change of -7.0%. The volume was 0.6 times average trading per week of 406.3 million shares.

1.2 5-day Recap

Mitsubishi UFJ Financial underperformed the Nikkei 225 index in 3 out of 5 days.

DayHeadlineClose price [JPY]Price change %Relative change %Comment
TuesdayMitsubishi UFJ Financial falls in 4 out of last 5 days704.7-0.10.001
MondayMitsubishi UFJ Financial in 2nd consecutive fall, nears two-month low705.4-1.1-0.3Steepest Fall
FridayMitsubishi UFJ Financial drops to two-month low713.6-0.7-0.5

Note

DayHeadlineClose price [JPY]Price change %Relative change %Comment
WednesdayMitsubishi UFJ Financial rises 1.7% from 14-day low711.61.00.5Top Rise
ThursdayMitsubishi UFJ Financial rises 0.9% from 14-day low718.70.1-0.5

SECTION 2: Technical indicators

Bearish:

The negative 6.22 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal (12-day minus 26-day Exponential Moving Averages). Both the 12-day and the 26-day EMA are falling - another bearish signal. In the past week, the stock's MACD has been negative every day, a reinforcing bearish signal.

The price decreased 1.5% in the last week and dropped 2.8% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Parity:

Price to Book of 0.7 [0.6]

Dividend yield of 2.5% [2.8%]

Undervaluation:

Return on Equity 6.5% [5.4%]

Return on Assets 0.3% [0.3%]

Note

The stock is at a discount of 9.0% to the 12-month high of JPY777.70 on 29 Jun, 2017. It is also at a premium of 51.9% to the 12-month low of JPY466.13 on 28 Jul, 2016.

Its Beta of 1.8 suggests this is a high risk, high return stock with volatility greater than that of the market.

Bullish:

In the last three months the stock has hit a new 52-week high once.

The present value of JPY1,000 invested one year ago is JPY1,512 [vs JPY1,206 for the Nikkei 225 Index], including a capital gain of JPY467 and dividend reinvested of JPY45. The total return to shareholders for 1 year is 51.2%.

SECTION 3: Ranking

DescriptionValueRank In Market
MCap $US billion87.8In Top 1%
Today's Volatility %0.7In Top Quartile
52-week Range (in JPY)466.1-777.7
1-month Range (in JPY)699.7-777.7
RSI17.6Bullish
Williams %R-86.4Bullish
Stochastic2.4Bullish

SECTION 4: Earnings

FY2017 Annual Report: Mitsubishi UFJ Financial Net Profit down 2.6%

Mitsubishi UFJ Financial (TO:8306) reported net profit for the year-ended 31 March 2017 of JPY926b ($US8.3b), down 2.6% from JPY951b ($US8.5b) in the previous year.

Major changes compared with previous year:

Favourable Changes:

- Retained earnings to total assets up 6.3% to 3.1%

Unfavourable Changes:

- Net profit down 2.6% from JPY951.4b ($US8.5b) to JPY926.4b ($US8.3b)

- Return on Equity down from 7.3% to 6.5%

Note:

- EBIT to total assets steady at 0.7%

SECTION 5: Recent News of Mitsubishi UFJ Financial

June 02: Mitsubishi UFJ Financial announces AGM

Mitsubishi UFJ Financial has announced its Annual General Meeting will take place on Thursday, June 29.

May 31: Mitsubishi UFJ Financial announces dividend

Mitsubishi UFJ Financial today announced a final dividend of JPY9.0 per share. The ex dividend date is Wednesday, March 29, 2017 and the record date is Friday, March 31, 2017 and it is payable on Friday, June 30.

Mitsubishi UFJ Financial Group Inc. (TO:8306; TYO:8306; T:8306; JP:8306)

ISIN: JP3902900004

Source: www.BuySellSignals.com