"Since they [retail investors] have been buying a lot of shares on long margin for the past three to four months, it comes to a level that they will have to start unwinding"
- Nomura
Japanese stocks extended losses on Friday, due to disappointing news coming from the U.S. A stronger Yen is also one of the main reasons for the weakness in the stock market.
The Nikkei 225 dropped by 0.3% to 8,769.2, holding above 5-day moving average at 8,754.34.
"Since they [retail investors] have been buying a lot of shares on long margin for the past three to four months, it comes to a level that they will have to start unwinding," said Jun Yunoki, an Equity Analyst at Nomura, adding that retail investors were unlikely to be buying aggressively.
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