In the morning session of the 20th trading day, we want to focus on the following three points.

- There seems to be strong buying interest in semiconductor and AI-related stocks on the dips.

- Okano Baru revised its earnings upward from JPY 492 million to JPY 880 million in operating profit.

- Attention in the morning session will be paid to TOPPAN HD, which has new construction materials factory in Turkey and expanding facilities in the United States.

- There seems to be strong buying interest in semiconductor and AI-related stocks on the dips.

On the Japanese stock market on the 20th, a slightly bearish market is expected, but it is likely to be a strongly entrenched market overall. On June 19th, the U.S. market was closed for Juneteenth, a holiday commemorating the abolition of slavery. The European market fell in Germany, France, and Italy. Because the overseas flows are limited due to the closure of the U.S. market, it is likely to be a market that is difficult to trend. It is expected that selling will precede due to the weak trend in Europe, but it is unlikely to trigger selling. The yen exchange rate is hovering at 158 yen per dollar.

In the night session, the Nikkei 225 futures temporarily fell to 38,300 yen, below the -1σ of the Bollinger Band. Although the market participants were limited, it is likely that the selling off of stocks that have continued to show strong movements in high-tech stocks will be easy to profit from. However, there seems to be strong buying interest in semiconductor and AI-related stocks such as NVIDIA, which has become the world's largest market capitalization company. If there are any short-term selling pressure moves, they are likely to be good buying opportunities on the dips. However, due to limited market participants, there may not be widespread interest in AI-related stocks. However, it is likely that there will be short-term price fluctuations in highly liquid stocks due to attempts to earn profits. As for small and medium-sized stocks, since they are mainly traded by individuals, footwork is required as the concentration of funds can easily lead to a quick exit. For stocks that have collapsed in value due to buying saturation, there is also a possibility that the market will look for buying opportunities on the dips after a round of sell-offs.

The Nikkei average began with buying, but was suppressed around the 25-day moving average and turned to a decline in the afternoon session. Due to the limited overseas flow, it seems that the selling pressure was predominant after the round of buying. It is likely that it will fall below the -1σ (38,460 yen) of the Bollinger Band today, but if there is a strong stability at the -1σ level, it is expected to turn to buying opportunities on the dips in high-tech stocks.

- Okano Baru revised its earnings upward from JPY 492 million to JPY 880 million in operating profit.

Okano Baru <6492> announced a revision of its financial estimates for the November 2024 fiscal year. Revenue has been revised upwards from 7.243 billion yen to 7.506 billion yen, and operating profit from 492 million yen to 880 million yen. The company is expected to exceed its initial estimates due to the earlier construction work for the resumption of operations of the Shimane Nuclear Power Plant No. 2, as well as the strong sales of replacement parts for thermal and nuclear power plants. Inspection work at the Joetsu Thermal Power Plant and the Nanao Ota Thermal Power Plant due to the Noto Peninsula earthquake has also increased.

Materials of concern in the morning session

- The Nikkei average has risen (38,570.76, +88.65).

- 1 dollar = 158.00-10 yen.

Expectations for inflation to ease in the US.

Request for improvement in corporate value by the Tokyo Stock Exchange.

- TOPPAN HD <7911> has a new construction materials factory in Turkey and expanding facilities in the United States.

- Panasonic HD <6752> Panconnect increased personnel exchange with Blu Yonder by 2 times.

- SUBARU <7270> aims to sell 50% electric vehicles by 2030.

- KDDI <9433> will have a new service with Lawson in the fall.

- Hitachi <6501> will increase the ratio of its control department's operating income to 57% for the current fiscal year, through business acquisitions in railroad system.

- Chiyoda Kansen <6366> Prozacri HD has filed a motion for withdrawal from LNG projects in the United States.

- J-Power <9513> will end Tosa Power Generation's business by the end of this fiscal year.

- Sumitomo Corporation <8053> acquires Malaysia's pharmaceutical and medical advice service to respond to a growing demand for preventative medicine.

H-One<5989> strengthens its mass production system for FCV plates with an investment of 2 billion yen.

IHI<7013> has completed the Yatsushiro biomass power plant, which specializes in wood burning and uses wood chips from Kumamoto Prefecture.

EIZO<6737> doubles its monitor production in China with the transfer of a subsidiary and expansion of its plant.

Advantest<6857> develops devices for accurate measurement of nanoparticles, targeted for drug discovery and bio industries.

Minebea Mitsumi<6479> establishes a development base in Slovakia to strengthen its automotive and industrial parts production.

Canon<7751> plans to launch a 3D scanning lens before the end of the year for compatibility with Apple's rumored AR headset.

ENEOS HD<5020>, through its JX Metal subsidiary, expands its production of materials for next-generation semiconductors in Chigasaki, among other locations.

Asahi Kasei<3407> offers sample supply of its aluminum nitride single crystal substrate with a usable area of ​​more than 99%.

Nakanohito Construction<1827> has received a large-scale collective housing order in Singapore.

Chubu Electric Power<9502> will start operating a hydroelectric power plant in Gifu in fiscal year 2027.

Mitsubishi Gas Chemical<4182> supplies methanol to domestic car carriers.

Toyo<4042> will raise the price of its paste PVC resin next month.

Kurita Industries<6370> establishes a water treatment chemical sales company in India.

☆ Schedule of events in the morning session

June government monthly economic report.

07:45 NZ GDP preliminary report for January-March (YoY estimate: +0.2%, October-December: -0.3%).

10:15 China's 1-year loan prime rate (currently 3.45%).