21 January 2015
Reporter: Stephen Durham
SunGard’s hottest stocks
SunGard’s Astec Analytics has compiled the hottest stocks from around the globe for the week beginning 12 January 2015.

The Paris-based operator of the cross-channel tunnel, Groupe Eurotunnel (GET.PA), is Astec’s top pick for the Europe, Middle East and Africa (EMEA) region after a lorry caught fire in the tunnel, causing a full-scale evacuation and the cancelation of all trains for the day.

This came as the company's share price has been making gains since the start of 2015, in which time the stock price has climbed about 8 percent, though data form Astec also suggests short sellers have been building positions in line with these gains; borrowing volumes now 29 percent higher than 1 January.

CNH Industrial (CNHI) is again suffering amid concerns over farming industrial sales.

Astec commented: “Despite some mixed trade in the cash market, [our] data suggests short sellers may be re-entering positions following a few weeks of closures, albeit only slightly, with borrowing volumes climbing 4 percent last week.”

In the Americas, Google (GOOG) is Astec’s top pick after its well-publicised Google Glass product was placed under new management within the company—management who suspended sales of the test model and put on hold the plans to bring out a revised model.

Though the company insists it is not abandoning the project, the move is being seen by most commentators as an admission of failure due to poor sales.

Astec's data has hinted at some growing interest form short sellers over the past few weeks, as borrowing volumes having climbed 21 percent in that time.

GoPro Inc. (GPRO) has also seen fresh attention in the Americas with news that it may be subjected to increased competition after Apple was granted a patent for a wearable camera device.

The news hurt GoPro's shares in the cash market, thought these declines seemingly brought about falling demand to borrow its shares, with the cost of borrowing falling from 24 percent to just 15 percent during the week.

In the Asia Pacific region, Sharp (6753) has seen focus build ahead of its latest earnings numbers—the announcement of which was dominated by a full-year profit warning which caused the shares to gap-down more than 5 percent.

On the borrowing front, Astec’s data has hinted at growing short selling activity for almost two months, with the number of shares being borrowed now 19 percent higher than 1 December 2014.

Finally, Japan’s Gree (3632) has been experiencing an ongoing share price slump that has seemingly brought about additional loss of demand to borrowing its stocks in the wake of the dividend related activity seen in December 2014.

The week's final session saw the cost of borrowing Gree shares fall from almost 12 percent per annum to just 5 percent.

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Pension funds pick Northern Trust for sec lending
28 April 2017 | Belfast | Reporter: Stephanie Palmer
Northern Trust has secured its thirteenth Irish state pension fund as a securities lending services client
BoE money markets code gets ISLA approval
28 April 2017 | London | Reporter: Drew Nicol
The code offers market best practice principles and acts as a revision and update of the securities borrowing and lending code and the gilt repo code
Lenders should stick to the scrip
27 April 2017 | London | Reporter: Drew Nicol
Beneficial owners are "leaving money on the table" by failing to engage in scrip options, heard attendees of the Finadium Investors in Securities Lending conference in London
Securities lending revenue drops as hot stocks fall short
27 April 2017 | London | Reporter: Drew Nicol
In a presentation at the Finadium Investors in Securities Lending Conference in London, DataLend revealed that revenue for Q1 2017 hit $2.5 billion, down $247 million from Q4 2016
State Street sees slow Q1 for securities finance
27 April 2017 | Boston | Reporter: Stephanie Palmer
State Street saw very slight declines in securities finance revenues in Q1 2017, securing $133 million, 0.7 percent less than the $134 million taken in the same period last year
Delta Capita acquires Appendium
27 April 2017 | London | Reporter: Mark Dugdale
Business and technology consultancy Delta Capita has acquired Appendium as it gears up to launch a securities finance utility later this year
Squawker launches equity finance platform
27 April 2017 | London | Reporter: Mark Dugdale
The new platform provides a central hub for European equity finance participants to bring the execution of their equity hedge trades on-exchange. Squawker said six investment banks are participating