Assessing the Impact of New NISA on Japanese Stocks by Analyzing Corporate Costs with Product Indicators

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It has been one month since the start of the new NISA (New Small Investment Tax Exemption Scheme). Stock prices continued their upward trend from the end of last year and remained strong in January. In response to the high stock prices, securities companies also performed well. The performance of major online securities firms, which have attracted attention for their zero commission policy, was also strong. Account openings due to the effect of the new NISA also contributed to performance.

The Nikkei Stock Average rose 2,822 yen (8.4%) during the month. The rise in U.S. stocks, especially high-tech stocks, had an impact. Those who made their investment debut with the new NISA at the beginning of the year would have seen positive results. On the other hand, those who tried to identify the uptrend may be frustrated that they missed out on buying. However, the market is like that. Let’s make room to savor the swell of the market.

Under the new NISA, a large amount of money has flowed into index investment trusts that invest in foreign stocks, such as eMAXIS Slim All Country and eMAXIS Slim U.S. Equity (S&P 500). In the growth investment space, buyers flocked to Japan Tobacco Inc. and Mitsubishi UFJ Financial Group, which are known for their high dividend stocks.

Profits are necessary to sustain high dividends. And one of the keys to profitability is to keep the cost of sales low. In this issue, we will consider a key cost for companies: commodity market indices.

Toyota or Honda…something to think about before

When you hear of commodity markets, you may think of crude oil futures and other “professional” markets. However, there are a variety of commodities that are familiar to us. For example, is it Toyota Motor Corporation, which has posted strong results with its strength in HV vehicles, or Honda, which unveiled its “0 (zero) series” EV vehicles in Las Vegas? If you are wondering where to invest, you may choose a tire manufacturer that can handle any type of vehicle, if you are betting on the expansion of global automobile sales. Tires require rubber.

For companies that use natural rubber as a raw material, a rise in the price of natural rubber will put pressure on profits. The “international indexes for natural rubber prices” include [RSS3] and [TSR20]. Commodities have international price indexes, and international price trends affect domestic commodity prices. Commodity prices can be compared to the flow of a river. Japan, which relies on imports for many of its raw materials, can easily obtain early stock price materials by keeping a close eye on the international commodity market, which is “upstream.

Let us consider the reason for the high price of chocolate from the viewpoint of “upstream information.

It is Valentine’s Day, so let’s consider “upstream information” in the context of chocolate.

Cacao beans are indispensable for chocolate. In a money class for elementary school students, when asked “Which country produces the most cacao beans? the answer is “Ghana. The correct answer is Cote d’Ivoire. The two countries of Cote d’Ivoire and Ghana account for about 70% of the world’s cacao bean production. Japan’s largest import destination is Ghana. The children are also very correct.

Knowing the upstream situation of cacao beans, the main raw material of the chocolate industry, it is understandable that chocolates for the Valentine’s Day shopping season were expensive.