Will short-term interest turn to companies announcing earnings reports?
Emerging markets showed a slight increase this week. While the Nikkei average was +0.52% during the same period, the Growth Market Index was +0.09%, and the Growth Market 250 Index was +0.09%. With trading volume remaining in the early 100 billion yen range and trading not expanding, the main stocks that announced earnings were dominated by selling pressure, leading to a heavy upside development. As the exchange rate fluctuated to 1 dollar = around 140 yen, providing a tailwind to the domestic-demand-heavy Growth Market, deteriorating investor sentiment prevented it from becoming a buying factor.
In the top market capitalization stocks, ispace <9348>, which announced a reattempt at lunar landing in December, was bought. Additionally, GN1 Group <2160> surged significantly over the weekend as a securities firm initiated coverage with a 'buy' rating. On the other hand, companies with disappointing earnings results like Time <215A>, GENDA <9166>, and Attorney.com <6027> were selling-dominant with Attorney.com experiencing a 6-day decline. In other news, Prodelight <5580> soared after announcing the acquisition of patents related to analyzing human emotions from voice. Chiba Bank <8331> was bought after announcing a TOB, resulting in Edge Technology <4268> being purchased. Meanwhile, QPS Laboratory <5595> was sold after announcing communication issues with the communication system of the small SAR satellite QPS-SAR5.
Will the market be influenced by speculations regarding the trilateral meeting of the central banks of Japan, the US, and China?
Next week, the emerging markets are likely to be influenced by speculations surrounding the trilateral meeting of the central banks of Japan, the US, and China, similar to the main board markets. With the exchange rate reaching around 140.20 yen per dollar over the weekend international market hours, if large-cap stocks decline due to yen strength against the US dollar, investor sentiment worsens, and there is a possibility of a collapse in the emerging markets, so caution is necessary. On the other hand, the Growth Market 250 Index shows a movement along the 25-day moving average line, gradually inching upwards. With a trading volume of around 100 billion yen, it is not easy to expect a strong trend that surpasses the 200-day moving average line, but an increase towards the 675 point level where the 25-day moving average serves as support and the 200-day moving average is positioned might be anticipated.
With trading volume not expanding and little widespread interest in major stocks, short-term interest is expected to focus on companies announcing earnings reports. Morpho <3653>, which announced good performance and a capital business partnership, is likely to lead in buying. Ashiro <7378>, INTLOOP <9556> are also likely to receive positive evaluations. On the other hand, AstroScale HD <186A> in the space sector is expected to face negative reactions as its final loss for the May-July period expanded significantly from 1.7 billion yen in the same period last year to 8.5 billion yen in losses. Companies like Classicom <7110>, Emi-Mien <9237>, Media Sokensho <9242>, Itami Art <168A>, and Manabi Aid <184A> are likely to start with selling dominance. Following GENDA's earnings announcement last week, which did not show signs of stopping its decline, caution is advised when aiming for rebounds after sharp drops in companies announcing earnings reports.