Like a number of Japanese stocks things have been mostly downhill for Mitsubishi UFJ Financial Group (NYSE:MTU) since early April. MUFG ordinary shares (Tokyo: 8306) are down more than 21% since they peaked on April 7th. A Merrill Lynch (MER) upgrade of the Japanese banking sector on June 15th seemed as if would be the catalyst to get MUFG going but its shares have yet to rebound. Will today's positive report by Morgan Stanley (NYSE:MS) get MUFG out of the dog house?
Ordinary shares of MUFG gained 1.33% overnight in Tokyo to close at their highest point since June 5th. FISCO news service in Japan reported today that Morgan Stanley reinitiated coverage on MUFG with an "overweight" rating saying it sees now as a good entry point. Among Japanese banks MS said Sumitomo Trust & Banking, Mizuho Financial Group, and MUFG have the biggest upside. It is recommending aggressive accumulation at these levels.
MUFG ordinary shares Monday close at 1.52 million yen equals $13.08 for its ADRs when adjusted for their listing ratio and the current exchange rate (approx. Y116.2/US$1), versus a Friday close of $12.88 for its ADRs.
Lastly, if I remember correctly, last Thursday Jim Cramer called MUFG the world's cheapest bank and seemed really bullish as he mentioned he bought more shares for his charitable trust.
Mitsubishi UFJ Financial Group (MTU) 1-year chart: