Latest news with #investment
Japan Times
24 minutes ago
- Business
- Japan Times
Rural bank plans its return to Japan bonds after winning on Nvidia
A regional bank that has stood out among its peers for making money on assets ranging from U.S. Treasuries to Nvidia is now looking closer to home for investments. Iyogin Holdings, which shunned Japanese government bonds during the era of negative interest rates, is ready to jump back in once a rise in yields runs its course, said Chief Executive Officer Kenji Miyoshi. Yields on Japan's sovereign debt have risen from rock-bottom levels as the return of inflation to the economy prompts the central bank to pare bond purchases and raise interest rates. That's led financial institutions to contemplate when to return to the nation's $7.9 trillion debt market after chasing higher returns abroad for years — a task that has been complicated by recent ructions, including a spike in long-term yields. Less than 10% of Iyogin's ¥1.8 trillion ($12 billion) securities portfolio is in Japanese sovereign debt. Once yields become attractive enough, JGBs could make up as much as half of its portfolio, Miyoshi said in an interview in the city of Matsuyama, Ehime Prefecture, about 800 kilometers southwest of Tokyo. Miyoshi said the 10-year JGB yield is likely to peak at around 2%, based on his assumption of the Bank of Japan's policy rate reaching 1.5%. "I think we can start buying at around 1.7% or 1.8%,' he said. The decision also depends on how lending, deposits and other components of the balance sheet will trend due to rising rates. Japan's 10-year yields are currently around 1.4%, and the BOJ this week kept its key overnight rate at 0.5%. Iyogin is already preparing for its return to the market. Miyoshi said the bank is now ready to use the same electronic platform for JGBs as the one it employs for stocks and foreign bonds, noting it allows trades to be executed more swiftly. That would differentiate it from bigger rivals in Japan, where government bond trading is often still done using old-style voice methods. Miyoshi also spoke about the potential for consolidation in Japan's regional banking industry, saying there are too many lenders in a country with a shrinking population. He expects a wave of mergers triggered by a growing sense of urgency among bank management. While Iyogin has no plans to pursue mergers now, Miyoshi doesn't want to be passive once moves toward combinations reach its home region of Shikoku — the smallest of Japan's four main islands — and neighboring Chugoku. "We want to play a central role in these regions,' he said from the bank's brand-new headquarters building. "For that, we have to build up financial and operational robustness.' Hefty trading gains from Treasuries and other foreign bonds helped Iyogin post record profits for a third straight year, making it an outlier in Japan's banking industry, where much larger firms suffered from wrong bets on interest rates. Iyogin Holdings CEO Kenji Miyoshi says once yields become attractive enough, Japanese government bonds could make up as much as half of its portfolio. | Bloomberg Nvidia added to the bank's successes. The value of Iyogin's investment in the U.S. chipmaker grew about 10 times since it bought a stake five years ago, when the yen was also stronger. The bank was able to lock in gains by selling some of its holdings in the year ended March. Miyoshi played down the bank's winning streak, saying it's simply a result of trying to minimize risks through diversification. The bank reduced some of its foreign bond holdings and other assets in anticipation of an increase in market uncertainty following the inauguration of the second Trump administration. In the process, its market securities-related profits more than doubled last fiscal year. Miyoshi said the bank made gains from Treasuries and other foreign bonds without currency hedges because it sold them when the yen was trending cheaper against the dollar. Japanese banks usually hedge their investments in assets abroad to guard against currency swings, but Iyogin held about ¥300 billion worth of unhedged foreign bonds as of March, in addition to ¥500 billion in those with such protection. When the Japanese currency moves higher against the dollar, the value of the unhedged bonds takes a hit in yen terms. At the same time, Miyoshi said that could be mitigated by a rise in dollar-based prices of these notes, since U.S. rates are likely to be lower in such a situation. He also said the bank's portfolio is made up of a mix of assets whose moves are designed to cancel each other out. Equities are part of that diversification. Iyogin is investing in individual U.S. and Japanese stocks and has room to add more exposure as it reduces ¥25 billion in what is known as strategic shareholdings, which are owned to cement business ties with corporate clients. Iyogin is a rarity in Japan's regional bank industry, where many of the nation's roughly 100 local lenders struggle with securities portfolio management because of a lack of expertise. The bank grooms its insiders to become market hands and doesn't hire mid-career outsiders. Still, Miyoshi, who spent years in Iyogin's markets team, said he is open to breaking with tradition by recruiting external talent. "We can sharpen our alertness to risks by taking in these people and their diverse views,' he said.
Bloomberg
41 minutes ago
- Business
- Bloomberg
Societe Generale's Benzimra on Outlook for Asian Stocks
Societe Generale's Frank Benzimra shares his views on the South Korean, Chinese and Southeast Asian stock markets. He says the firm is looking at the China consumption story, and adds that it's neutral on India and underweight Indonesia, Malaysia and Thailand. Benzimra speaks on Bloomberg Television. (Source: Bloomberg)
Yahoo
an hour ago
- Business
- Yahoo
Shopify, Lightspeed, and WELL Health: Are They Good Buys Today?
Written by Sneha Nahata at The Motley Fool Canada The Canadian benchmark index has cooled slightly after achieving a new all-time high as concerns over an economic slowdown eased. Despite this upward trajectory, some of the technology stocks haven't followed suit, showing weaker performance compared to the broader market. For instance, Shopify (TSX:SHOP), Lightspeed (TSX:LSPD), and WELL Health (TSX:WELL) remain well below their previous highs, even as broader sentiment improves. As these Canadian stocks are trading at a discounted valuation, let's explore what's behind their recent performance and whether now might be the right time to buy in. Shopify's stock has faced pressure recently, mainly due to broader economic uncertainty that could impact consumer discretionary spending. However, the company's underlying fundamentals remain strong, and its solid financial performance suggests that the stock could be poised for a rebound, making it an attractive option for long-term investors. In the first quarter, Shopify reported a robust 27% increase in revenue along with a 15% free cash flow margin. This marks the eighth straight quarter with revenue growth exceeding 25%. Moreover, its Gross Merchandise Volume (GMV) has grown by over 20% for seven consecutive quarters. This track record highlights Shopify's ability to scale profitably and deliver sustainable long-term earnings. Several growth drivers could help propel Shopify stock higher. Shopify's offline and B2B operations are gaining traction, generating strong GMV. Its international business is also delivering solid growth. Another key growth area is Shopify Payments, which reached a 64% GMV penetration in the first quarter and expanded into 16 new markets, strengthening its leadership in the omnichannel commerce space. Despite economic challenges, Shopify's expanding merchant base, global footprint, and strong financial metrics indicate resilience and potential for sustained growth. For investors with a long-term outlook, now may be an opportune time to buy Shopify stock. Lightspeed stock has taken a significant hit, trading well below its peak despite steady revenue growth and improving average revenue per user (ARPU). In fiscal 2025, the company reported $1.1 billion in revenue, representing an 18% year-over-year increase. Its strategy centres on high-grossing Transaction Value (GTV) customers who utilize multiple modules of its platform, resulting in improved retention, higher margins, and increased revenue per user. Lightspeed's ARPU rose 13% to $489, while subscription ARPU climbed 11%, reflecting strong demand for its integrated POS and payment solutions. Moreover, its investment in product development, along with cost management and customer retention efforts, positions it well to deliver solid growth ahead. However, despite its efforts to improve its financials, Lightspeed stock has yet to rebound, remaining stuck after its steep correction. Until investor confidence returns, Lightspeed remains a show-me story, implying its recovery may still take time. WELL Health Technologies stock has faced pressure in 2025, mainly due to tariff uncertainties and a delay in revenue recognition from its U.S. subsidiary, Circle Medical. Despite this, the company's core performance remains strong. In Q1 2025, WELL reported 1.6 million patient visits, a 23% year-over-year increase led by a 29% surge in Canadian visits and 13% organic growth. Its Canadian operations, including WELLSTAR and clinics, continue to be a significant growth engine. Strategic acquisitions have also enhanced its tech capabilities, expanding future growth potential. The company will benefit from consistent demand for omnichannel healthcare services and its focus on boosting operational efficiency. Backed by a healthy balance sheet, WELL Health is reducing debt and limiting share dilution, which will reinforce investors' confidence in the stock. Moreover, its growing presence in Canada's clinical market and a discounted valuation make WELL Health an attractive long-term investment. The post Shopify, Lightspeed, and WELL Health: Are They Good Buys Today? appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Business
- Yahoo
4 Top Canadian Stocks I'd Buy for Dividends and Capital Growth
Written by Robin Brown at The Motley Fool Canada Canada is well known for its plentiful array of dividend stocks. Canadians get a dividend tax credit when they collect dividend income from Canadian stocks. As a result, dividends are more tax-advantaged in Canada than in other countries. While dividends are a tangible cash return, there is no point collecting them if your capital investment is destroyed. That is why I prefer to avoid dividend stocks with high yields (stocks with yields over 7–8%). You might collect some near-term elevated income, but you are at risk of that income getting cut and the stock seriously declining. It is better to earn a modest dividend and also enjoy capital returns. If you are looking for Canadian stocks that pay dividends and could grow capital as well, here are four to look at now. Dollarama (TSX:DOL) only yields 0.22% today. While that is pretty minuscule, the reason it is so small is because the stock has significantly outperformed the dividend growth in the stock. Dollarama's stock is up 311% (32% compounded annually) over the past five years. Its dividend has only grown by a 13% compounded annual growth rate (CAGR) (though that is extremely respectable). This Canadian stock has executed its growth strategy exceptionally. While its growth in Canada is expected to moderate, its Latin America joint venture and recent Australia acquisition could provide room for long-term growth. Dollarama is a pricey stock, but it has proven its worth over time. Another Canadian stock for income and growth is Intact Financial (TSX:IFC). It has a 1.7% yield today. IFC stock has increased its dividend for 20 consecutive years. Over the past 10 years, it has increased its dividend by a 10% CAGR. Intact has delivered strong stock performance. This Canadian stock is up 136% in the past five years. Intact has acquired its way to become the leading auto, home, and business insurance provider in Canada. Intact has growing divisions in specialty insurance. It is also expanding in the U.K. For a solid business with continued levers for growth, Intact is a great income and growth stock. AltaGas (TSX:ALA) is more of a traditional boring dividend stock. It operates a gas utility business in the U.S. and a gas midstream business in Western Canada. While these are not the most exciting businesses, the company has executed a turnaround strategy that has delivered excellent returns. Its stock is up 149% in the past five years. AltaGas gets a stable income stream from its utility. That utility is delivering sector-leading growth. Its midstream business is growing from strong Asian demand for Canadian energy products. AltaGas yields 3.25%. It has been growing its dividend over the past few years by a 5–7% annual rate (that should continue ahead). Secure Waste Infrastructure (TSX:SES) is not a dividend-growth story like the above stocks. However, it is a share buyback story. Last year, it bought back 20% of its stock. This year, it is set to buy back 5–6% of its stock. Secure stock yields 2.6% today. That is despite its stock rising 762% over the past five years. Secure continues to look attractive. SES stock trades at a significant discount to other waste providers, despite a more attractive growth profile. It is a great stock for income, value, and capital growth ahead. The post 4 Top Canadian Stocks I'd Buy for Dividends and Capital Growth appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Robin Brown has positions in Secure Waste Infrastructure. The Motley Fool recommends Intact Financial and Secure Waste Infrastructure. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Independent Singapore
an hour ago
- Business
- Independent Singapore
Singapore ranks 2nd most 'investing-obsessed' country globally
SINGAPORE: Singapore has been ranked the second most 'investing-obsessed' country in the world, according to forex broker BrokerChooser . The study examined global search volumes of investment-related terms and found that Singapore had 22,527 such searches per million people each month. Only Australia ranked higher, with 29,359 searches. BrokerChooser analysed commonly searched phrases, such as 'how to trade forex,' 'which crypto to buy now,' and 'investing for beginners,' to rank each country. The report also revealed that Singaporeans are especially curious about crypto, which accounted for 8,108 of the monthly searches. Forex-related searches came next at 5,962, followed by general investing questions like 'how to invest my money' at 3,322. Other 'investing-obsessed' countries in the top 10 were Kenya (17,288), New Zealand (16,061), Canada (14,566), the UAE (13,904), the UK (12,655), Ireland (11,096), and the US (10,194), with Malaysia (8,589) completing the list. Adam Nasli from BrokerChooser said that while many people still hesitate to start investing, the growing curiosity worldwide shows that more are ready to move past hesitation and explore what's possible. 'Some of the biggest barriers tend to be a lack of knowledge and fear of losing money,' he noted, adding that learning about risk management and diversifying portfolios can help starting investors make informed decisions instead of reacting out of fear. 'Once you get past those initial hurdles, smart investing opens up real opportunities to build sustainable wealth. Rather than seeing it as a gamble, think of it as a strategic tool to achieve your financial goals,' he added. A separate survey from BrokerChooser also revealed that younger adults have become more interested in investing, with about 30% of Gen Z starting to invest while still in university or early adulthood . /TISG Read also: 'Equity', 'ETF', and 'GDP' are the top financial terms Singaporeans don't understand
