Buybacks are being made mainly in major sectors with high market capitalization.
Emerging markets rose significantly this week. During the same period, the Nikkei Stock Average rose by +8.67%, while the Growth Market Index rose by +8.19% and the Growth Market 250 Index rose by +8.43%. Due to the retreat of concerns about the slowdown in the US economy, as well as the stabilization of the US and foreign exchange markets, the growth market, like the Prime market, has shown a trend of trying to rebound. Buybacks are being made in major sectors with high market capitalization, and the Tokyo Stock Exchange Growth Market 250 Index has recovered to its waterlevel on August 2nd.
In companies with high market capitalization, JTOWER <4485> hit a two-day limit high due to an American infrastructure investment company's announcement of a TOB at 3,600 yen per share. ispace <9348> and integral <5842> rebounded strongly, and Adventure <6030> was sold due to a dislike of its earnings. Lawyers.com <6027> and G-NI Group <2160> were also sold as earnings were disliked. Short-term funds have risen sharply on low-priced stocks with double-digit stock prices such as Fluttah Flutta <2586>, Solasia Pharma <4597>, and AppBank <6177>, except for the top market capitalization stocks.
Will the trend of trying to rebound continue?
We believe that next week's emerging markets will continue to try to rebound due to the improvement of investor sentiment. Profit-taking is likely to occur in response to the rapid rise, but the downside is likely to be limited, as it was originally strongly sold. If the gap (609.71-620.68) in the Tokyo Stock Exchange Growth Market 250 Index is filled from August 1st to 2nd, there is a possibility that the rebound trend will be stronger. Although the trading value has not expanded in proportion to the trading volume due to the strong search for low-priced stocks, it can be expected that the trading value will increase as the main stocks that announced earnings become more active. If a shift from trading based on price movements to investment based on performance and themes can be seen, investment funds with a firm footing are likely to flow in. As for individual stocks, the search for ultra-low-priced stocks with light price movements is likely to continue, but it seems that it will soon come to a close due to the improvement of investor sentiment. This week, AI CROSS <4476> became the top buyer based on earnings and shareholder benefits, and FRONTEO <2158> was also considered material for earnings, so there is a possibility that funds will go to AI-related stocks. Stocks such as Edge Technology <4268>, Kudan <4425>, ABEJA <5574>, and Laboro.AI <5586>, which are slow to rebound, should be of interest. As the bio-related search has come to a halt, attention should be focused on AI-related stocks as the next search pillar.
Note that on the 21st of next week, Opro <228A>, which handles business support, will be listed on the growth market. As the first listing on the growth market since Heartseed <219A> on July 30th, it is easy to attract attention, including recent IPO stocks, such as Taimi <215A> that reached a high on August 14th.