Amid a market environment showing signs of the summer doldrums, Sugimura Fuo (杉村富生) identifies candidates as his “seven selected stocks for stock picking” and explains their current trends and the direction of stock selection. The article focuses on current price movements and the outlook ahead.
The current market is considered to be in the midst of a correction. The Nikkei 225 fell from its June high and, although it rebounded after hitting a low in July, the recovery has been sluggish, with summer-doldrums trading conditions expected to continue. Trading volume is trending lower, and active trading is expected to be restrained in September, the end of the interim financial reporting period. In October and November, international money flows and hedge fund activity are considered likely to have a greater impact on the market.
The article presents the current prices and points of interest for individual stocks in a list. Among them, リベラＷ is priced at ¥1,214, テラドロン at ¥21,620, ＦＩＧ at ¥1,139, ノスサンド at ¥2,141 and 楽天Ｇ at ¥792.
As for the direction of stock picking, the article states that focusing on individual stocks is an effective strategy, and suggests that strong earnings, increased share buybacks and activist investor activity could support share prices. It also identifies points of interest in stocks such as Tokio Marine Holdings and Tokyo Electric Power Company Holdings, indicating that each stock offers its own potential appeal.
The overall market is expected to be affected by the outcome of the midterm elections and developments in the Middle East, with possible spillover effects from oil prices and interest-rate trends. The Bank of Japan’s policy of monetary normalisation and comments on addressing inflation are also considered likely to influence market activity, and the view is presented that a strategy focused on individual stocks will remain effective.