Month: November 2024

October stock prices rose toward the end of the month against the backdrop of a weak yen and strong U.S. stock market after the general election, after a decline due to concerns about the ruling party’s expected difficulties.

The CG Top 20 stock market outperformed both TOPIX and JPX400 for the sixth consecutive month in October.

October stock market began the month with a buy-back lead by higher U.S. stock market after a sharp decline at the end of the previous month. Thereafter, investors became more risk averse due to the view that the Liberal Democratic Party (LDP) would struggle in the general election. After the general election, the market rebounded and closed higher on the back of a relaxed sentiment, a weaker yen, and higher U.S. stock prices.

One year has passed since TSE requested companies to “manage their companies with an awareness of the cost of capital and stock price” (so-called “P/B raise”). As of the end of March, more than half (885) of the prime market listed companies had disclosed their measures, and more companies are expected to do so once the companies whose fiscal year ends in March begin to disclose their measures. In recent disclosures, some companies have broken down their ROE and indicated target values when referring to the cost of capital, partly as a result of TSE’s publication of good practices in disclosure materials.