The securities arm of Nomura Holdings (NYSE:NMR) has released its July survey of individual Japanese investors (for direct access to .pdf click here). This month's survey shows that individual investors continue to be mostly optimistic with 81.3% out of 1,000 respondents expecting the Nikkei 225 to rise over the next three months. Results however, show that investors may be less bullish and have more mixed feelings, especially regarding particular sectors such as financial stocks.
Extracts from Nomura’s Individual Investor Survey
Area of investment focus: Stock price movements and technical factors (13.9%), High earnings and growth (14.1%), Stable earnings and growth (50.3%), Dividends and shareholder returns (21.7%)
(1) Outlook on the stock market is mostly positive but trading activity is still in a lull with investors taking a wait and see approach — … 81.3% of the respondents said they expect the Nikkei Average to rise during the next three months.
(2) Domestic economy, corporate earnings, market factors, and psychological factors are all seen as less positive stock market impact factors than in prior months. The largest response was "neutral" versus "somewhat positive" last month.
(3) Information & telecommunications was the top choice as the most appealing sector; 2nd was pharmaceuticals & healthcare; and 3rd was consumer related
Least appealing: Resources, construction & real estate, and financials
(4) In the survey's feature question respondents were positive to the introduction of quarterly dividends but wanted "clear dividend distribution targets and policies to ensure quarterly dividends would be linked to improved shareholder returns."
Most Watched Stocks: (survey respondents were only allowed to choose 1 stock; Japanese tickers are 4-digit codes)