This week’s market outlook highlighted stocks with strong earnings and those that have been dormant for a long time, with supply and demand and share-price movements cited as indicators for determining whether the market had bottomed. Stock selection is expected to focus mainly on consumer goods, railway and trading-company stocks.
The Nikkei 225 continued to rise and then give back its gains, and it was noted that stock supply and demand and share-price movements are important for determining whether the market has bottomed. An analysis was presented that identified the trend in margin-buying balances since 6 November as a key factor in investment decisions. The Nikkei 225 subsequently rose for 3 consecutive days, and the possibility of a market bottom was said to be increasing in some situations, although investors were still urged to make decisions without relying solely on individual catalysts.
Stocks highlighted for future attention included Isetan Mitsukoshi Holdings and Takashimaya among consumer-related names, Hankyu Hanshin Holdings in the railway sector, Hulic in real estate, and Itochu in trading companies. The outlook also indicated that an expansion in consumer spending toward year-end would be key.
Over the longer term, strong earnings and a shift in market supply and demand were identified as central to stock selection, while the possibility that cash-equity selling could increase during a recovery in AI and semiconductor-related stocks was noted. The stocks discussed were identified as candidates to watch in situations where share-price movements are the prerequisite.