The Tokyo stock market rebounded on 18 September for the first time in 3 days. More than 52 stocks were reportedly selected, focusing on issues with bullish Parabolic signals and price-to-book ratios (PBRs) below 1.0x. The selected stocks comprised 42 companies considered to have substantial upside potential from among low-PBR stocks.
On 18 September, the Nikkei Average rebounded for the first time in 3 days, closing ¥882 higher than the previous day at ¥65,018. Buying flowed into AI and semiconductor-related stocks amid gains in U.S. markets and lower oil prices. The results of the Bank of Japan's monetary policy meeting were released before the lunch break, and its stance suggesting continued monetary easing brought calm to the market. However, selling to unwind positions emerged in the afternoon as the autumn long holiday period approached.
This feature combines the Parabolic technical indicator, which is used to identify market turning points, with stocks having low shareholder-equity ratios. It selects stocks with PBRs below 1.0x from among 125 Prime Market stocks that had posted bullish Parabolic signals. A total of 42 stocks were selected and identified as having further upside potential.
Examples of stock names and indicators include 合同鉄, with a PBR of 0.31 and PER of 10.1x; メガチップス, with a PBR of 0.45 and PER of 4.6x; ユニプレス, with a PBR of 0.45 and PER of 13.2x; and 積化成, with a PBR of 0.54 and PER of 11.3x. The list also includes stocks such as Mitsubishi Motors and Nihon House Holdings, which are assessed as having upside potential among stocks with low PBRs and bullish Parabolic signals.
The continued buying of AI and semiconductor-related stocks alongside the rise in the Nikkei Average is cited as background to the stock selection. The feature aims to identify stocks that appear to have further upside potential from among low-PBR stocks.