4 Nov 2015
Japan Post shares surge fails to add to JPY volatility - MUFG
FXStreet (Delhi) – Derek Halpenny, European Head of GMR at MUFG, notes that there has been little impact on the yen from the successful IPO of Japan Post shares, with the holding company shares surging to close 26% higher.
Key Quotes
“Japan Post Bank Co. increased 15% while shares in the insurance arm jumped 56%. According to Bloomberg, Japan Post became the third largest gainer on IPO day in Japan’s history underlining how cheap the share price was set in order to ensure strong demand from Japanese households.”
“Now the focus will quickly shift to diversification plans of Japan Post Bank’s JPY 200trn of assets, held largely in JGBs. Japan Post Bank President Nagato has attempted to dampen those expectations somewhat by reminding investors that unlike GPIF, which has long-term liabilities, Japan Post Bank must invest over shorter-term horizons and hence the appetite for investing aggressively in equities will not be the same as GPIF’s appetite.”
Key Quotes
“Japan Post Bank Co. increased 15% while shares in the insurance arm jumped 56%. According to Bloomberg, Japan Post became the third largest gainer on IPO day in Japan’s history underlining how cheap the share price was set in order to ensure strong demand from Japanese households.”
“Now the focus will quickly shift to diversification plans of Japan Post Bank’s JPY 200trn of assets, held largely in JGBs. Japan Post Bank President Nagato has attempted to dampen those expectations somewhat by reminding investors that unlike GPIF, which has long-term liabilities, Japan Post Bank must invest over shorter-term horizons and hence the appetite for investing aggressively in equities will not be the same as GPIF’s appetite.”