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 on November 5, 2024 at 3:00 PM

The Nikkei Average rose significantly after the House of Representatives election. However, it declined at the end of October. With changes in leadership in both Japan and the USA, the outlook for the stock market remains uncertain. Investors around the world are eager to see how they predict the future.

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

Following the recent House of Representatives election, where the Liberal Democratic Party significantly reduced its number of seats, Prime Minister Ishiba seems to be facing criticism. While he has no intention of resigning, Shinjiro Koizumi has resigned as the head of the election campaign committee. Despite promising to "ask the people for their trust" before the election, will he be able to avoid taking responsibility for such results?

The future schedule includes the intention to hold a prime ministerial selection election during the special session of the Diet on November 11. This will determine the fate of Prime Minister Ishiba. The rise in the Nikkei Average after the crushing defeat of the Liberal Democratic Party in the House of Representatives election was believed to be in anticipation of Ishiba's resignation. However, if he decides to remain in office, it may change the Japanese stock market.

Regarding the Bank of Japan's monetary policy, there seems to be no change in strategy other than considering raising interest rates. The Ishiba administration appears to be lacking in economic expertise as expected, and it is likely that the Bank of Japan will follow the Ministry of Finance's directive to raise interest rates under the pretext of a weak yen.

If Japanese politics are currently not positive for the stock market, attention may shift to the US economy. With increasing momentum for interest rate cuts by the US Federal Reserve... Regardless of who becomes the Prime Minister of Japan, it is important to continue focusing on themes such as semiconductor-related, datacenters, and nuclear power as part of national policy.

Now, one company worth introducing in the nuclear power sector is Shikoku Electric Power <9507>. Following the upward revision in the earnings announcement on October 29, the stock quickly gained momentum. We are closely watching to see if it can form an upward trend after breaking above the 25-day and 75-day moving averages.

Another nuclear power-related company, Takada Company <1966>, announced an upward revision on October 30. As a solid player in the plant industry, the company has expectations in energy plants and semiconductor manufacturing equipment as well. The p/e ratio and pb are undervalued, and we are monitoring whether the candlestick chart (daily) can form an upward trend after the earnings announcement on November 6.

In the semiconductor sector, keep an eye on Disco <6146>. Following the strong earnings report of Lam Research, a US semiconductor manufacturing equipment maker, typical Japanese semiconductor-related stocks, including this company, have started to attract attention. Due to the demand for AI semiconductor, precise processing equipment for HBM (High Bandwidth Memory) such as grinding and polishing are doing well, gradually lifting prices from the bottom.

Japan Electron <6951>, which announced an upward revision on October 29, benefited from a weaker yen and performance contributions from scientific and measuring instruments. Breaking above the 25-day and 75-day moving averages, can it form an upward trend...? The forecast for the fiscal year ending March 2025 is expected to be the highest profit ever.

Lotes <6323>, which is being sought after in the semiconductor sector, is expected to achieve its highest profit ever in the fiscal year ending February 2025, confirming a rebound from the bottom. With strong demand for semiconductor-related equipment in China, it is important to watch whether this performance can be sustained even after the US presidential election.

Finally, focusing on TOWA <6315> in the semiconductor sector. The company's main business is resin sealing equipment, benefiting greatly from a 90% overseas sales ratio and the merits of a weaker yen. Although it has been in a long-standing downtrend, can it hit bottom and make a trend reversal.

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