21 January 2015
Global
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
J.P. Morgan and Citi collaborate on truePTS post-trade platform
15 December 2017 | New York | Reporter: Zsuzsa Szabo
The New-York-based startup processes ecosystem for the global $700 trillion derivatives market
SIFMA: US market requires improved CCP access
15 December 2017 | Washington DC | Reporter: Jenna Lomax
The Dodd-Frank Act has increased the need for US firms to have access to non US swaps trading venues and central counterparties, according to paper by FIA and SIFMA
France raises spectre of European financial transactions tax
15 December 2017 | Paris | Reporter: Jenna Lomax
French President Emmanuel Macron and several ministers have dismissed concerns over the negative effect of an EU financial transactions tax on securities lending revenue
Vekaria exits Credit Suisse
14 December 2017 | Dublin | Reporter: Zsuzsa Szabo
Head of Credit Suisse's Dublin branch Manish Vekaria has left the bank
Cerberus hires new managing director
14 December 2017 | New York | Reporter: Jenna Lomax
Kimmel was previously global head of prime services at Cantor Fitzgerald
SMEs to face new research costs under MIFID II
14 December 2017 | Frankfurt | Reporter: Zsuzsa Szabo
Research services for SMEs will no longer be free of charge when MiFID II comes into force on 3 January 2018
Hedge funds in sprint finish for record-breaking returns in 2017
14 December 2017 | London | Reporter: Drew Nicol
Hedge funds are on track for their best annual revenue since 2013 with average returns of 7.7 percent, according to eVestment research