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 plans accuse banks of anti-competitive behaviour
18 August 2017 | New York | Reporter: Drew Nicol
Three US pension plans have accused six of securities lending’s biggest banks of blocking nascent platforms and keeping the market for themselves
Repo passes judgement on MMF collateral rules
18 August 2017 | Brussels | Reporter: Drew Nicol
Thirteen industry stakeholders made up of major global banks and industry associations responded, with largely positive feedback on ESMA’s proposals
UBS expands securities lending team
17 August 2017 | Zurich | Reporter: Drew Nicol
UBS’s has regained Iwan Lichtsteiner as a member of its fixed income, securities lending and financing team, effective from October
Clearstream angling for central role in China’s market growth
17 August 2017 | Luxembourg | Reporter: Drew Nicol
Deutsche Börse Group and Clearstream representatives will be present at the Shanghai International Financial Advisory Council being at the end of August
Whitebox Advisors chooses Broadridge suite solution
17 August 2017 | New York | Reporter: Drew Nicol
Whitebox Advisors has mandated Broadridge Financial Solutions to transform its technology platform into a fully integrated, hedge fund operation
Clearstream confirms rates for September
16 August 2017 | London | Reporter: Jenna Lomax
The market infrastructure provider charges different rates for equities and debt, and on a per currency basis
CloudMargin unveils microsite for OTC derivatives
15 August 2017 | London | Reporter: Jenna Lomax
The new microsite, designed by UK-based design agency Eight Arms, was created to help financial institutions globally become accustomed to the new margin rules and other regulations affecting their collateral management functions