The following is a comment written by a FISCO social reporter for individual investors, Mr. Yuusuke Yuge (Blog: Profitable Stock Information" Nekodanna's Stock Never Ceilings "). At FISCO, we strive to work with individuals who are actively disseminating information to deliver a diverse range of information to investors.

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Written at 10:00 on October 7, 2024.

With the establishment of the Ishiba administration, the general policy direction has become clear. Market seems to be moving quickly in response to the contents of the policy speech, creating a volatile market mix of expectations and concerns that may continue.

I am Yugi Yuge, who writes a stock and cat blog called 'Profitable Stock Information "Nekodanna's Stock Never Ceilings"'.

After listening to the policy speech on October 4, I will briefly summarize the points that caught my attention. From national defense including the treatment of the Self-Defense Forces and the establishment of a Disaster Prevention Agency, there were statements on economic policies surpassing price increases with wage hikes. Energy policies including GX and agriculture are also interesting themes.

Overall, as also pointed out by some media outlets, the impression of the policy speech lacks specificity and does not shine. In the economic field, said to be Prime Minister Ishiba's weakness, while abstract goals were set, there was no mention of specific actions to be taken. Perhaps influenced by the significant stock market crash immediately after taking office, it seems that there is some distance from the interest rate hike and tax increase route that was advocated before taking office.

The exchange rate of USD/JPY, which was expected to rise, rapidly shifted towards a weaker yen direction since October. It is certain that both the foreign exchange and stock markets are in turmoil. As the market becomes increasingly unpredictable, a risk-off mood is apparent, prepared to flee at the first sign of trouble.

Prime Minister Ishiba's policies have been fluctuating considerably before taking office, with a pending dissolution general election, and considering the geopolitical risks of the US presidential election and the Middle East, the situation is complexly intertwined with various factors. For now, it may be a choice to follow related stocks of Prime Minister Ishiba obediently without going against the trend.

Ise Chemical Industry, a major player in iodine production <4107>, seems to be gradually raising its downside recently. In Prime Minister Ishiba's policy speech, there was content about promoting GX. Iodine is used in perovskite solar cell materials, and there are expectations for the company.

Japan Steel Works, which is being sought after as a defense-related company <5631>, recently updated its year-to-date high. There seems to be speculation due to the heightened tension in the Middle East as October arrives. If President Trump is re-elected, there may be further interest... The performance is solid, and the increasing dividend trend is well-received.

Tokyo Keiki, a major in ship and aircraft instruments <7721>, also seems to be attracting attention as a defense-related company. The new ultrasonic flowmeter for liquids, UC-1, announced on September 25, eliminates the need for piping work and achieves visible energy visualization with a "completely construction-free" feature. There may also be speculation in energy-related areas such as decarbonization, not just defense-related.

Carlit HD <4275>, which deals with semiconductor silicon wafers, explosives, and rocket propellants, is seen as having favorable news for entering the magneto-optical materials field. Silicon Technology, a subsidiary of the company, has established the technology to stably produce yttrium iron garnet single crystals. With a PBR below 1, the performance is also steadily progressing.

Nippon Kodo Kaihatsu, which has turned to profitability, broke the bottom and surpassed the 25-day moving average and 75-day moving average. With a PBR below 1, the company is actively engaging in share buybacks. The company, whose main business is civil engineering, may have expectations related to the Disaster Prevention Agency. It is worth watching even after the financial results on October 15.

Finally, let's check Japan Basic Technology <1914> from a disaster prevention agency perspective. The company, which has strengths in ground improvement and landslide countermeasure construction, is also expanding its performance. If the Ishiba administration advances measures against earthquakes and heavy rains, there is a possibility of expanding demand.

Well, the story has become a bit long, but on my blog, I introduce "individual stocks and theme stocks that are currently strong". Please take a look if you have time. We look forward to welcoming you with our beloved cat, "Al".

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Author Name: Yuugentei Tamaki Blog Name: The Cat Master's Stocks Know No Limits

Blog Name: The Cat Master's Stocks Know No Limits