Active trading centered around earnings reports.

This week, the emerging markets declined. During the same period, the Nikkei average fell by -2.17%, while the growth market index dropped by -0.28% and the growth market 250 index was down -0.15%, indicating that the emerging markets managed to hold up relatively well. Concerns over trade friction heightened by the policies put forth by the incoming Trump administration weighed on the main board, but the emerging markets, which contain many domestic demand stocks, remained relatively stable. Active trading occurred primarily around the earnings reports of major sectors, with trading volumes increasing after the 13th. Both the growth market index and the growth market 250 index showed solid movements compared to the Nikkei average and TOPIX.

Among the top market capitalized stocks, GENDA <9166>, which reached an all-time high on the 8th, faced strong selling pressure, while Timy <215A>, which lagged in addressing part-time job measures, saw a continuous decline over 12 days, hitting a new all-time low. On the other hand, Buysell <7685>, buoyed by its earnings and stock splits, reached a limit up by the weekend, while Cover <5253> showed significant gains due to strong performance and positive reports from securities firms. Other stocks, such as yutori <5892>, rain wind sun <5616>, and rice curry <195A>, were sold off due to their earnings reports. Meanwhile, UUUM <3990> surged over the weekend due to a tender offer by its controlling shareholder, and STG <5858> and MTG <7806> rose based on their performance.

Trading is likely to focus on stocks that have released news.

Next week, the emerging markets are likely to see a decrease in trading volumes as the earnings reports cycle through, similar to the main board. The growth market 250 index is above the 25-day moving average (25MA) but below the 5-day moving average (5MA), lacking clear direction. Given that this week’s increase in trading volumes did not result in a definitive trend, it may be difficult for the index to maintain a strong performance. While there may be some expected trading related to securities reports after earnings releases in the main board, the emerging markets lack coverage, making related trading less likely to occur. Next week, trading is anticipated to focus on stocks with news from this week or those that have recently shown price movements.

Among the top market capitalized stocks, attention will be on whether Buysell, which ended with limit up trading on the weekend, will continue to see buying interest, while Cover, which has surged since the end of October, recorded trading volumes of 50 billion yen on the 13th, indicating very high investor interest. As the market is seeing significant short-term trading, caution is warranted against sharp fluctuations. Conversely, Sapeet <269A>, which has been sold to less than half of its all-time high on the 8th, may soon attract value buyers. Additionally, due to bitcoin prices remaining high, speculative trading in cryptocurrency-related stocks is expected to continue.

On the 22nd, Garden <274A>, which operates in the food and beverage business, will be listed on the standard market. This is the first ipos since Sapeet's listing on October 29, and although it lacks flashiness coming into the standard market with a food and beverage focus, if a solid price formation occurs, it could create momentum for a surge in ipos leading up to year-end.