In trading five days ago, there are three points to note.
Despite thin trading, the market is expected to be optimistic about future developments. In terms of product structure, operating income for products worth 10-30 billion yen were respectively 401/1288/60 million yen.
Kewpie Corporation revised their earnings forecast for the November 2024 fiscal year, increasing sales revenue from 480 billion yen to 486 billion yen and operating profit from 31 billion yen to 34 billion yen.
Key points for the morning session: GSI Creos expands dialysis equipment sales in Central and South America by integrating with medical clinics.
Despite thin trading, the market is expected to be optimistic about future developments.
Although the Japanese stock market on the 5th appeared to become more stagnant, there is an optimistic outlook for future developments despite thin trading. The US stock market was closed for Independence Day on the 4th, which limited foreign investor flows. The Nikkei Stock Average updated the highest record since March 22 with a consecutive increase in five business days until the previous day, which could lead to an immediate sense of achievement. Despite concerns of overheating due to sharp increases in stock prices, selling on profit-taking is expected to occur more easily.
On the other hand, in the second half of the week, observations have been made that index buying of Nikkei Stock Average type has been intermittently entering. Yesterday, SoftBank Group<9984> entered the market in the afternoon and was motivated, updating the highest record reached during the IT bubble at the time in February 2000. Due to index buying, stocks with large index impact such as high-tech stocks have pulled the Nikkei Stock Average. With limited foreign investor flows, funds targeting domestic high-tech stocks and other types of stocks are also likely to increase since the inflow continues to be related to indices.
Meanwhile, in the face of significant overheating due to sharp increases in stock prices, there is a possibility that inflows of funds, such as funds that are slow to buy, due to record high levels of the Nikkei Stock Average could increase. Therefore, it is thought that if the situation where clear adjustments are not made continues, buying on the dips for this purpose could postpone entry timing.
It is expected that there will be selling demand related to the contribution of distribution payments due to the earnings of passive type ETFs next week. Because of concerns over such selling pressure, it seems that there will be no active follow-up of upward movements, and there is likely to be some reservation on purchases with some anticipation of expected selling pressure. In addition, after the holidays, the announcement of US employment statistics in June is expected, but it is anticipated that growth of employers and wages will be slow, and there is a possibility that the Federal Reserve Board (FRB) will give impetus to early interest rate cuts.
Under the awareness of lower long-term interest rates due to the results of US employment statistics, there seems to be a strong desire to buy stocks with price dips such as high-tech stocks. Moreover, in Japan, economic circles have shown the need to urgently send a message by raising interest rates after expressing concerns about an oversold yen. With the possibility of policy changes by the Bank of Japan, there is likely to be a focus on financial sectors and others.
Kewpie Corporation has revised its earnings forecast for the November 2024 fiscal year, increasing operating profit from 31 billion yen to 34 billion yen.
Kewpie Corporation<2809> announced a revision to its earnings forecast for the November 2024 fiscal year. They increased sales revenue from 480 billion yen to 486 billion yen and operating profit from 31 billion yen to 34 billion yen respectively. This has made progress beyond initial expectations due to steady sales growth in the retail, business use, and overseas segments resulting in improved earnings. They also revised their dividend forecast, raising the forecasted end-of-term dividend from 27 yen to 31 yen per share. (Annual dividend is raised from 50 yen to 54 yen.)
Materials of concern in the morning session
The Nikkei average rose (40,913.65, +332.89).
The night session Nikkei futures in Osaka rose (40,910, +20 compared to Osaka daytime).
Expectations for inflation to ease in the US.
Request for improvement in corporate value by the Tokyo Stock Exchange.
GSI Creos<8101> expands dialysis equipment sales in Central and South America by integrating with medical clinics.
JR Kyushu<9142> collaborates with SkyDrive to commercialize flying cars.
NTT<9432> NTT DoCoMo will increase the "sub-6" area in Tokyo by 30% this fiscal year to improve communication quality.
Honda<7267> sold 500 billion yen worth of its company's shares, which were owned by four non-life insurance companies and Mitsubishi UFJ Financial Group.
Fellowtec Holdings<6890> withdrew its application for listing its stock investment subsidiary.
MSJ Asset Management, a subsidiary of Mitsubishi Heavy Industries<7011>, has begun the process of special liquidation.
Goldwin<8111>, together with Mitsubishi Corporation and others, distributes and supplies polypropylene fibers derived from CO2.
Koichi Transportation<9025> has begun double-linked truck transportation with four companies, including Suntory and Daikin.
Toyota Tsusho<8015> remotely analyzes electrocardiographic data and reports to medical institutions.
- Honda <7267> new car sales in January-June, N-BOX ranked first for three consecutive years, the only one with sales of over 0.1 million units.
- Hitachi <6501> succeeds in observing the magnetic field of lattice surfaces and develops a method for heterogeneous samples.
- Sumitomo Chemical <4005> strengthens its pharmaceutical business, focuses on development, manufacturing, regeneration, and cell medicine.
- Toray Industries Inc <3402> improves the brightness and durability of scintillator panels for non-destructive X-ray inspection.
- JFE Steel simulates a blast furnace in a virtual space to support the DX of Indian steelmaking.
- Chugoku Electric Power <9504> partners with KOKKO and three other companies to reuse and recycle discarded solar panels for power generation.
- Tohoku Special Steel <5484> targets ¥26 billion in revenue for the 2026 fiscal year.
☆ Schedule of events in the morning session
08:30 May household spending (year-on-year expected: +0.3%, April: +0.5%).
Not applicable.