There is a strong interest in stocks with specific materials.

This week, Emerging Markets rose. During the same period, while the Nikkei Average increased by +0.97%, the Growth Market Index rose by +1.63% and the Growth Market 250 Index increased by +1.70%, indicating that Emerging Markets were relatively strong. At the beginning of the week, due to the upcoming calculation of December Futures and Single Option special settlement values (SQ values) and the rise in US stocks, Large Cap stocks were strong, pulling Emerging Markets along. As the weekend approached, following the passage of the major SQ, active trading in Large Cap stocks was withheld, leading to a temporary shift in focus toward Emerging Markets. While there was active interest in stocks with specific materials, the large-cap stocks varied in strength.

Among the large-cap stocks, GENDA <9166>, which announced good earnings, widened its gains after some fluctuations, recovering to the 3000 yen range for the first time since November 12 during trading hours. Meanwhile, Timee <215A>, which had been experiencing tight movement, witnessed a surge to a stop-high due to its strong performance. On the other hand, MTG <7806> announced that there were suspicions of underreporting costs at its subsidiary and hit a stop-low by the weekend. The initial price of Infomatics <281A>, which was listed on the Growth Market on the 9th, was 993 yen, which is 8.1% lower than the offering price. Similarly, the initial price of Yukaria <286A>, which listed on the Growth Market on the 12th, was 975 yen, 8.0% below the offering price. Conversely, the initial price of Raxus Technologies <288A>, which debuted on the Growth Market on the 13th, was 426 yen, exceeding the offering price by 51.6%, marking a strong initial price formation.

With the activation of IPOs, there is also growing interest in recent IPO stocks.

Next week, the Federal Open Market Committee (FOMC) meetings will be held on the 17th-18th, and the Bank of Japan will hold its monetary policy decision meeting on the 18th-19th. As a result, interest in the Main Board is expected to rise due to speculations surrounding the central bank meetings in Japan and the US, while interest in Emerging Markets might decrease until the events pass. However, after the central bank meetings in Japan and the US, and with the major SQ concluded this weekend, Institutions are anticipated to begin their Christmas breaks. Toward the weekend, interest is expected to shift from the Main Board to the Growth Market. The direction of the Growth Market 250 Index remains uncertain, but with the activation of IPOs, active trading is hoped for due to the inflow and outflow of short-term funds.

GENDA, which showed strong movement toward the weekend, could see buying activity based on supply and demand if it updates its all-time high since its listing. Meanwhile, Astroscale HD <186A> announced a revision of its FY2025 consolidated earnings forecast. Although the deficit is expected to widen compared to the previous term, there is speculation that it is in line with estimates, so attention should be paid to its movement at the beginning of the week. Additionally, with the activation of IPOs, interest in recently listed IPO stocks is likely to grow.

Next week, on the 17th, Kuroda Group <287A>, which is engaged in the production of printing plates for LCD Displays, and Reskill <291A>, which operates a human resource development business, will be listed on the Standard Market. On the 18th, Kioxia HD <285A>, which manufactures memory and related products, will be listed on the Main Board, and on the 19th, Dely <299A>, which operates smartphone applications, and Synspective <290A>, which develops and operates small SAR satellites, will also be listed on the Growth Market. There is growing interest in Kioxia HD, but concerns remain about a public offering that did not reach the upper limit of the indicative range, which raises fears of below-offering pricing.