2017/10/16 The impact of a substantial net buying by foreign investors "From Kouya Hiro's Technical Room"

Impact of overseas large net buying. Publication date: 2017/10/16 07:54

Overseas investors' substantial net buying accelerates the rise

The net buying/selling difference by overseas investors over the four weeks after the September 8 low was

as follows, and the net buying totaled 2,831.4 billion yen.

yen.

（Overseas investors' net buying）

Net buying

September week 2: + ¥816.9 billion

September week 3: + ¥847.0 billion

September week 4: + ¥58.2 billion

October week 1: + ¥1.1093 trillion

（Note） total (spot + futures)

During this period, the Nikkei Average rose by 1,416 points,

and the substantial overseas net buying contributed to the stock-price rise.

The contribution to the rise is evident.

The second week of October has not yet been announced, but the Nikkei Average

has risen by 464 points, and paradoxically, overseas buyers'

net buying seems to be continuing.

With overseas net buying of ¥200 billion,

the Nikkei Average tends to rise by about ¥100.

Similar large net buying was also seen in the initial phase of the Trump rally.

(Four weeks from 11/07 to 12/02)

In four weeks, overseas investors net bought ¥3,023.8 billion, and the Nikkei

Average rose by ¥1,518.

Even when simplified for both the present and last November, if overseas investors

net bought ¥200 billion, the Nikkei Average rises by about ¥100.

Additionally, this pattern shows that the Nikkei tends to rise by 100 for a 200 billion net buy.

Overseas investors, in the three months from October to December last year, net bought ¥5.0761 trillion.

There seems to be room for further buying by overseas investors, but

the yen's depreciation has stopped, which is a concern.

This is because since last year, overseas investors' substantial net buying

has been tied to a weakening of the yen.

If overseas buying continues, regardless of other conditions,

there remains room for stock prices to rise.

though.

Considering that the four weeks of substantial net buying occurred after the low,

the momentum of overseas buying also appears to be weakening,

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