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Emerging Markets outlook: Attention may turn towards lightly traded ultra-low-priced stocks and biotech-related stocks.
■ Emerging Markets outside of the investment radar. This week, Emerging Markets declined. During the same period, while the Nikkei average dropped by -1.95%, the Growth Market Index fell by -2.67% and the Growth Market 250 Index decreased by -3.09%, indicating that Emerging Markets were relatively weak. As attention turns to the central bank meetings in Japan and the US, reports of Nissan <7201> and Honda <7267> beginning discussions on a management integration have led to speculation surrounding Main Board auto stocks and Auto Parts suppliers, leaving Emerging Markets outside of active investment consideration.
Overview of the Tokyo Stock Exchange Growth Market 250 Index Futures: Selling pressure is dominant in anticipation of the announcement of the US policy interest rate.
On December 18, the TSE Growth Market 250 Index Futures closed at 619 points, down 3 points from the previous trading day. The highest was 628 points, the lowest was 619 points, and the intraday trading volume was 3,034 contracts. The Dow Inc on the US market fell for nine consecutive days on the 17th. After the opening, it declined due to high long-term interest rates. Although the November retail revenue released in the morning exceeded market expectations, and the view that the Federal Reserve Board (FRB) would lower interest rates at tomorrow's Federal Open Market Committee (FOMC) remains unchanged, the pace of rate cuts next year is uncertain.
Emerging markets stock digest: WASH House has rebounded significantly, Japan Electrolytic has reached its upper limit.
<4054> Japan Information C 1174 -23 declined. After the close of trade on the 5th, it was announced that a capital and business partnership with Bcan would commence, leading to an initial rise; however, it has declined under market pressure. Bcan develops services related to employee benefits and housing consulting for companies, with a primary focus on trades with rental management companies, builders, brokerage firms for a-reit etf sales, and renovation contractors. The services provided by Bcan, including employee benefits and housing consulting, are integrated.
Hot stocks digest (first half): Intermestik, Itoki, WASH House, etc.
Sandra Drug Co. Ltd. <9989>: 3,894 yen (+181 yen) shows a significant rebound. The company announced its monthly trends for November the previous day, which appears to have contributed to buying momentum. The total same-store sales for the group increased by 2.6% compared to the same month last year, achieving positive growth for two consecutive months. The drugstore business saw an increase of 2.4%, marking a return to positive growth for the first time in two months. It seems that seasonal products are driving this trend. Going forward, expectations for further growth are anticipated as last year's hurdles gradually decrease.
Lawyer.com --- Decline, Niigata City starts using "CloudSign" for electronic contract services.
A decline occurred. After the trading ended on the 5th, the city of Niigata announced the launch of the contract management platform "CloudSign" as part of its electronic contract service implementation. This marks the sixth implementation among designated cities. The nationwide adoption share of CloudSign among local governments has reached 70%, making it the No.1 electronic contract service in terms of implementation numbers among local governments, and it plans to continue promoting electronic contracts nationwide. However, the reaction to the stock price has been limited.
Emerging markets outlook: Will the search for interim bargains continue, or will funds flow into core stocks?
■This week, emerging markets are on the rise as large cap stocks in the main board are attracting attention. The Nikkei average showed a decline of -0.20%, while the Growth Market Index increased by +0.51% and the Growth Market 250 Index by +0.91%, highlighting the strength of emerging markets. In the USA, expectations for a rate cut at the Federal Open Market Committee (FOMC) meeting in December have strengthened, while expectations for a rate hike at the Bank of Japan's monetary policy meeting in December have also increased. This has raised awareness of the narrowing interest rate differential between Japan and the USA, impacting the foreign exchange market.