Video

#SaxoStrats
Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Strategic trade
Trade view / 21 June 2015 at 23:00 GMT

#SaxoStrats: A long trade on Japan's Softbank

Global Macro Strategist / Saxo Bank Group - Singapore Hub
Singapore
Instrument: 9984:xtks
Price target:
Market price:
Background

Japanese telecommunications firm maintains a stake in Chinese online retailing giant Alibaba that is presently equal to the company's entire market capitalisation. This means, essentially, that investors get the rest of the telcom concern for free.

At present, Softbank is well supported around the 7,000 level and as lagged the broader Topix rally by about 45% over the past 18 months. We remain confident of the Japanese macro story, and are bullish on the USDJPY and long Japanese equities.

Softbank share price:
Softbank
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Source: Bloomberg, Saxo Bank 

Softbank five-year chart:
Softbank five-year
Source: Google Finance 

Management and risk description

The key risk here is sideways and/or rangebound trading into the year's end.

Parameters

Entry: 7,150

Stop: 6,750 (minus 5.9%)

Target: 7,800 (plus 8.8%)

Time horizon: End of 2015.

— Edited by Michael McKenna

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Non-independent investment research disclaimer applies. Read more

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