In the morning session of the 15th trading day, the following three points should be noted.
Be cautious about chasing the upside due to political instability.
Dentsu Group, 24/12 downward revision of operating profit from 135.4 billion yen to 107.1 billion yen.
In terms of product structure, 60% of sales revenue is from semiconductor and electronic materials, developed by Rezonac HD, in the FY30.
Be cautious about chasing the upside due to political instability.
On the 15th, the Japanese stock market is likely to move toward a stance of targeting dips in the strong stalemate market development. On the 14th, the NY Dow was up 242 points and the Nasdaq was up 4 points. With the confirmation of inflation slowdown in the July US Consumer Price Index (CPI), there were continued purchases with the expectation that the Federal Reserve Board (FRB) would be more likely to cut interest rates. The clearing price of Nikkei 225 futures at the Chicago Mercantile Exchange was 36,275 yen, down 105 yen from Osaka. The yen is trading at around 147.20 yen per dollar.
Starting with a somewhat profit-taking approach, it is likely to move toward waiting for dips, so NY Dow regained the $0.04 million mark after the results of the US CPI prompted heightened expectations for an interest rate cut in September. On the other hand, some semiconductor stocks were bought, but the Nasdaq index barely extended its winning streak for the fifth day, amid a mix of highs and lows. With limited impact on high-tech stocks, which have a large impact on indices, the stalemate is likely to become stronger.
Also, yesterday, Prime Minister Fumio Kishida announced that he would not run in the party's presidential election, which led to a decline. Although the Nikkei average recovered its level before the sharp drop on the 5th, proactive trading is likely to be restrained amid simmering political anxiety. Maintaining the stability of downside is expected in the near term.
As for screening, while keeping an eye on the movements of high-tech stocks, funds are likely to be directed to TOPIX-type stocks other than financial stocks, such as those sensitive to the economy. In addition, it is also conscious of reviewing good performance brands again, now that earnings announcements have passed. The following companies, which announced their earnings last night, are attracting attention: Skylet <3197>, Change HD <3962>, AnyMind <5027>, BUYSELL <7685>, ice style <3660>, air try <6191>, DataSec <3905>, Asahi Intec <7747>, NetPro HD <7383>, and Medipia <6095>, among others.
In addition, the US VIX index, which fell below 20.00 the previous day, has fallen to 16.19. Amid the tendency toward risk appetite, the buying interest in waiting for dips is likely to be strong. If the Nikkei average becomes a stalemate, individual funds are likely to shift to small and mid-cap stocks.
Dentsu Group, 24/12 downward revision of operating profit from 135.4 billion yen to 107.1 billion yen.
Dentsu Group <4324> announced a revision to its fiscal year 2024 financial estimates. The operating profit was revised downward from ¥135.4 billion to ¥107.1 billion due to anticipated revenue declines in the Asia-Pacific region, such as China and Australia, leading to impairment losses. The costs related to the sale of the company's business in Russia, against the backdrop of the Ukraine invasion, exceeded expectations.
Materials of concern in the morning session
Nikkei Average rose (36442.43, +209.92)
NY Dow rose (40008.39, +242.75)
The Nasdaq Composite Index rose (17192.60, +4.99)
1 dollar = 147.20-30 yen.
VIX index decreased (16.19, -1.93)
Long-term US interest rates fell.
Expectations for inflation to ease in the US.
Active share buybacks
Request for improvement in corporate value by the Tokyo Stock Exchange.
Rezonac HD <4004> is developing semiconductor and electronic materials, accounting for 60% of its revenue in FY 30.
Tsubaki Nakashima <6371> acquires Kodaya Shouten's vegetable factory for agricultural expansion.
Nissan Motor Co. <7201> Achieves Accuracy Comparable to Press with Counter-Side Dieless Forming.
JTOWER <4485> is acquired by a US investment firm for a tender offer of 76 billion yen in total.
In addition, Takeshi Ohba was appointed president of the Kyushu High Speed Ship Group, responding to safety management misconduct.
Nikki-So <6376> is constructing a new research building for next-generation energy support.
Sumitomo Corporation <8053> aims to expand its business by conducting health measurements at its company cafeteria.
Seven & i Holdings <3382> plans to procure renewable energy for 40% of its retail power supply through a newly established electricity company over the next 30 years.
Macnica <3132> strengthens its self-driving car services through an investment from NTT West Japan.
Honda <7267> has completed the transfer of ATV's North American production to North Carolina and is considering electric vehicle products.
Taiyo Yuden <6976> expands its inductor products for smartphones, now compatible with high current.
Okinawa Cellular Telephone <9436> collaborates with KDDI on data purchase for "Povo" service.
Mitsubishi Estate <8802> participates in the large-scale condominium development project in Vietnam.
Bulkar <7995> promotes the digitization of facility inspections through cooperation with San-in Godo Bank.
Taisei Corporation <1801> visualizes wind noise risks for building exterior plan.
Sun Frontier Fudousan <8934> establishes a new support base in Shibuya for emerging businesses.
UACJ <5741> President Shinji Tanaka reports that can material sales are on the rise.
☆ Schedule of events in the morning session
8:50 1st Preliminary Release of GDP for Q2 (Year-on-Year Estimate: +2.3%, Q1: -2.9% ← -1.8%)
10:30 Australian Unemployment Rate for July (Estimate: 4.1%, June: 4.1%)
10:30 Australian Change in Employment for July (Estimate: +0.02 million people, June: +0.0502 million people)
11:00 Production in the Mining Industry in July in China (Year-on-Year Estimate: +5.2%, June: +5.3%)
11:00 Chinese Retail Sales for July (Year-on-Year Estimate: +2.6%, June: +2.0%)