December 4, 2014 / 7:56 AM / 4 years ago

Trust banks' weekly net buying of Japan stocks biggest since May

TOKYO, Dec 4 (Reuters) - Trust banks were net buyers of Japanese stocks last week, posting their biggest value of net buying since May, exchange data showed on Thursday, indicating that pension funds might have bought Japanese equities.

Net buying of stocks by trust banks, which manage corporate pension trusts and national pension fund trusts, was at 221.12 billion yen ($1.84 billion) during the week of Nov. 25-28, data from the Tokyo Stock Exchange showed.

Trust banks bought 596.99 billion yen worth of Japanese stocks last week, while it sold 375.88 billion yen worth of Japanese stocks.

“The fact that the amount that they bought is big means that a big pension fund could have bought Japanese shares,” said Shingo Kumazawa, an analyst at Daiwa Securities.

“It’s possible to think that the GPIF (Government Pension Investment Fund) was buying after it announced its portfolio change on Oct. 31.”

On Oct. 31, Japan’s $1.2 trillion GPIF announced new allocations for its portfolio, which include raising domestic stock holdings to 25 percent from 12.

“The GPIF may have bought Japanese stocks in order to raise its allocation of Japanese stocks to (gradually) reach 25 percent,” Kumazawa said.

Meanwhile, foreigners were net sellers of Japanese stocks last week after becoming net buyers for five straight weeks. ($1 = 119.8600 Japanese yen) (Reporting by Ayai Tomisawa; Editing by Anand Basu)

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