In the wake of the large cap plunge on the weekend, funds flowed into the emerging markets.
The emerging markets rose this week. During the same period, while the Nikkei Average rose +0.68%, the growth market index rose +2.60% and the growth market 250 index rose +2.99%, highlighting the rise of the emerging markets. Since the beginning of the week, trading volume in the emerging markets has declined and a tight range has continued in both the growth market index and the growth market 250 index amid tame price movements. However, on the weekend, large-cap stocks fell sharply by over 1,000 yen in the Nikkei Average, while funds flowed into the emerging markets. Both indices enlarged their gains as leading stocks with large market capitalization, including all constituent stocks in the growth market core index, were bought. The Russell 2000, which consists of small and mid cap stocks, surged 3.57% higher than the previous day on October 11th in the United States, which is seen as a factor in the influx of funds into the growth market.
Among top market capitalization stocks, GENDA <9166> rebounded for the first time in six days and updated its all-time high at the end of this week, while COVER <5253> and GMO FG <4051> had double-digit gains in the previous day. On the other hand, iSpace <9348> remained weak with a slight rebound at the weekend. In addition, ENECHANGE <4169> rebounded significantly after filing its annual securities report, and some biotech stocks such as CELL SEED <7776>, Simbiotic Pharmaceuticals <4582>, and Perseus Proteomics <4882> were bought. As for the other stocks, MEDREX <4586>, VRAIN Solution <135A>, and CREEMA <4017> became sellers due to unfavorable earnings results.
Attention is focused on whether this weekend's trend will continue, and only one company will go public (IPO) next week.
Next week's emerging markets may depend on the U.S. market, but attention will be paid to whether this weekend's trend will continue. The growth market 250 index clearly exceeded the 75-day moving average line, which had been seen as a resistance level. With increased trading volume, the upward perception is likely to be stronger. If the 200-day moving average line, which is currently at 686 points, is exceeded, it will be the first time since April 1st of this year. With the 25-day moving average line pointing upward, a solid market development centered on leading stocks with large market capitalization can be expected if they exceed such a milestone. If the daily trading volume of the entire growth market reaches around JPY 200 billion, individual investors who traded small and mid cap stocks in the prime market are likely to participate in the growth market as well. Only one company, KADOS CORPORATION <211A>, will go public on the 18th next week, so the target of speculative trading is likely to continue to be leading stocks, biotech stocks, and earnings-related stocks.
ELEMENTS <5246>, which revised its business operating income forecast for the current term to be in the black, VISASQ <4490>, which expects record high earnings for ordinary income compared to the previous year by 4.9 times, LOGOS HOLDINGS <205A>, which announced its first dividend payment since listing with good performance, COCOLIVE <137A>, which expects to update its record high earnings for the fifth consecutive period in operating income, and AHC Group <7083>, which will implement dividends this term, although it has not been done in the past, are expected to be newsworthy at the beginning of next week. Although such earnings-related stocks have violent inflows and outflows of short-term funds, it can be confirmed that investors have strong interest in speculative trading by the continuing animal spirits that change from day to day.