Shares of automated-driving company TIER IV,Inc. reversed a sharp rally on 9 October, falling substantially to close at ¥2,316. The intraday high was ¥2,765, while trading volume reached 41.61 million shares and trading value approximately ¥105.5 billion, reflecting major moves over a short period.
On 9 October, TIER IV,Inc. came under heavy buying in the morning before plunging in the afternoon. After opening at ¥2,434, the stock recovered to around ¥2,600 but ultimately closed at ¥2,316. The intraday high was ¥2,765 and the low was ¥2,308, with the closing price approximately ¥160 lower than the previous day. Trading volume was approximately 41.61 million shares and trading value reached approximately ¥105.5 billion.
The move came against a backdrop of information released on 7 October that TIER IV,Inc. had been newly added to the TOPIX constituents, while news indicating business development in AI-related technologies based on Arm also acted as a market catalyst.
Friday's VWAP was approximately ¥2,534, around 8.6% above the ¥2,316 closing price, suggesting that buyers may have faced widening unrealized losses. The large trading volume suggests that short-term capital was highly active, although no information identifying the parties responsible for the trades was provided.
Following Friday's sharp rise and fall, the focus on Tuesday, the next trading day, is expected to be whether the stock can hold around ¥2,300 and test a recovery to ¥2,434. Movements in the overall market and the impact of the US market will also need to be monitored.
Going forward, attention will remain on how long-term growth expectations for automated driving and AI as growth themes, together with short-term supply-demand imbalances, affect the share price.