The rise in emerging markets is limited.
This week, emerging markets are on the rise. During the same period, while the Nikkei Average increased by +3.80%, the Growth Market Index increased by +1.05% and the Growth Market 250 Index by +1.12%, highlighting the weight of the upside of emerging markets. Due to President Trump's victory in the U.S. presidential election leading to a weakening yen and strengthening dollar in the foreign exchange market, attention turned to large cap stocks, limiting the rise of emerging markets. Although earnings reports in emerging markets are gradually increasing, active trading based on earnings reports from main board listed companies has intensified. Trading volume also remained around 100 billion yen, with no apparent effect of extended trading hours.
Among the top market capitalization stocks, GENDA<9166>, which strengthened its buying trend after announcing a collaboration with Fuji Kyuko <9010>, hit a new all-time high since listing. BASE<4477> rose following volatile movements after earnings reports, Cloud Works<3900> announced a shareholder return plan with good earnings results leading to a significant increase, and GMO Broadcasting<6180> also rose as good earnings were seen as a positive factor. On the other hand, Time<215A>, which had been showing a strong rebound, faced renewed selling pressure and fell to its all-time low. In relation to earnings, GMO Tech<6026> and Solacom<147A> were sold off. Additionally, Frutta Frutta<2586> surged as it was nominated for the 2024 buzzword award, but fluctuated with a sharp decline due to negative sentiment towards the tightening of margin trading regulations.
Sapeet<269A> and others have a very high level of investor interest.
Next week in the emerging markets, individual stock picking is likely to intensify as earnings announcements of major stocks increase. On the 11th, Sky Mark<9204>, Integral<5842>; on the 12th, ispace<9348>, Cover<5253>, GMO Financial Gate<4051>; on the 13th, Trial HD<141A>, Bengoshi.com<6027>; on the 14th, Trit<9164>, Buysell Tech<7685>, JTower<4485>, Life Net Life<7157>, Wealth Navi<7342>, GNI Group<2160>, Safer<4375>, Free<4478>; daily major stock earnings announcements are scheduled, indicating an expected increase in trading volume in the growth market.
The Growth Market 250 Index is at a battle point for crossing the 25-day moving average line (25MA). Depending on the earnings of major stocks, there is a possibility of surpassing this upper resistance line. If this level is cleared, the next target would be the 200-day moving average line (200MA) at the 660 point level. This level, being a strong upper resistance line having been rebounded twice in September, is likely to be considered as a target since no significant upper resistance line is found until the 200-day moving average line. Other than earnings announcement stocks, short-term funds are likely to flow to volatile stocks like Frutta Frutta, Sapeet<269A>, Birdman<7063>. In particular, recent IPO Sapeet, with a large range between the upper limit after hitting the daily limit up on the 6th, followed by a limit down, has attracted very high investor interest.