Market review: the index fluctuated all day, and the outflow of northward funds accelerated in the afternoon
Today, the trend of the two cities differentiated again. As of the close, the Shanghai index rose 0.03% to 3563.89 and the Shenzhen index fell 0.10% to 14795.73. In terms of sectors, national defense and military industry, computers and communications led the increase, while food and beverage, agriculture, forestry, animal husbandry and fishery and non-ferrous metals led the decline. The turnover of the two cities was 1221.87 billion yuan, an increase of 3.76% over the previous trading day and 4.91% over the average of the previous five days. Shanghai Stock connect sold a net 2.185 billion yuan, Shenzhen Stock connect sold a net 1.225 billion yuan, and northbound funds sold a net 3.411 billion yuan throughout the day.
Market focus:
According to the data released by the National Bureau of statistics on November 30, in November, China’s Manufacturing Purchasing Manager Index (PMI) was 50.1%, up 0.9 percentage points from the previous month, above the critical point and back to the expansion range.
Strategy suggestion: it is recommended to pay attention to the national defense and military industry sector
Today, the two cities underwent shock consolidation in the morning, fell sharply in the afternoon, and rose again in the late afternoon. Northbound funds once bought a net of more than 2 billion yuan in the morning and accelerated their outflow in the afternoon, exacerbating market volatility. The transaction volume is again large, and the market transaction is more active as a whole. The trend differentiation of CSI 300 and CSI 1000 is obvious, the overall performance of small and medium-sized market capitalization stocks is relatively good, and the heavyweights are relatively weak. Plate, yesterday’s strong food and beverage sector today, a large callback, including high-end and high-end Baijiu stocks fell, Dongpeng special drinks and other soft drinks stocks also experienced a callback. We believe that the consumer sector still has better layout opportunities in the traditional peak season at the end of the year and under the expectation of profit recovery. It is suggested to focus on the undervalued blue chip targets of the fine molecule sector. Steel, mining and other sectors fell again today, or mainly due to the risk aversion caused by Omicron virus. At present, the pathogenic characteristics of new mutants have not been determined, but Japan, South Korea, Belgium and other countries have successively strengthened epidemic prevention and blockade. At present, the epidemic situation is still the biggest uncertain factor affecting the prosperity of the pro cyclical sector. It is recommended to deal with the fluctuation risk carefully in the short term, At the same time, pay close attention to the global epidemic, inflation and changes in major central bank policies. In addition, the national defense and military industry sector led the rise again today, and the industry boom continued to rise. This sector is less directly affected by the epidemic, so it is recommended to pay attention.
The purchasing manager index (PMI) in November mainly released the following signals to us: first, the rise in production costs was curbed. In November, the purchase price index and ex factory price index of main raw materials were 52.9% and 48.9% respectively, down 19.2 and 12.2 percentage points from the previous month, which was reflected in “maintaining supply and stabilizing price” Under the active regulation of continuous policy overweight, the reduction of raw material costs drives the decline of enterprise production costs. Therefore, the profitability of the midstream manufacturing industry is expected to improve. It is suggested to pay attention to the bottom opportunities of steel and other sectors. Second, both supply and demand of the manufacturing industry have improved. In November, the production index recorded 52.0%, an increase of 3.6% over the previous value, or mainly driven by the relaxation of power supply constraints. At the same time, the new order index was 49.4%. Although it was still below the dry and prosperous line, it increased by 0.6% over the previous value, reflecting the repair of the demand side. Omicron’s impact on China’s economy is relatively limited in the short term, and the expectation of continuous improvement of the manufacturing industry remains unchanged.
