COVER Corporation

Cover fell sharply in a broad selloff. On September 24, the previous day, the company announced an upward revision to its cumulative second-quarter profit forecast for the fiscal year ending March 2027, but left its full-year forecast unchanged. In addition, sales progress in the merchandising segment, which has until now driven earnings, is falling short of initial expectations, which appears to be a source of concern for the market.

The Tokyo stock market rose for a third straight day on August 13, with the Nikkei Stock Average closing at 68,308.59, up 784.53 points from the previous trading day. In the game and entertainment sector, decliners outnumbered gainers among the 99 registered stocks, with 42 rising and 50 falling. Mobile game maker Akatsuki rebounded after swinging to an operating profit of 690 million yen in its first quarter results. Tokyo Tsushin Group surged after posting double-digit profit growth in all three segments in its second quarter results. Nippon Ichi Software rose for a fifth consecutive day on the announcement that its new title Village in the Shade will be released on October 27. Meanwhile, Cover fell after reporting a sharp profit decline in its first quarter results.

The Nikkei Average rebounded on the 23rd, closing 307 yen higher at 66,422 yen. Following Alphabet's increased capital expenditure plans, funds flowed into semiconductor-related stocks, with Advantest and SoftBank Group leading the index higher. Meanwhile, on the Prime Market overall, declining issues outnumbered gainers, as domestic demand sectors weakened amid rising crude oil prices and higher long-term interest rates. Ferrotec, which sharply raised its full-year operating profit forecast, hit its daily limit up with pro-rata allocation, while Cover, which announced the launch of a new game service, plunged on sell-on-the-fact trading. Trading value on the Tokyo Stock Exchange Prime Market was approximately 8.56 trillion yen.