On March 21, A-Shares were mainly volatile throughout the day. The decline of big finance in the afternoon once dragged the Shanghai stock index down to 3223 points, and then gradually recovered the lost ground and closed in the red market. Covid-19 special drugs, coal, agriculture, lithium batteries and other sectors were strong throughout the day, while securities, insurance, railways and other sectors led the decline. Industry insiders said that the market hot spots rotate frequently, the weight performance is good and bad, and the lack of sustainability leads to the weak rise of the index. In the near future, the market may still be in the bottom grinding period. Investment suggestions focus on three directions.
anti epidemic theme continues to rise
On March 21, the anti epidemic theme represented by covid-19 specific drug performed best in the A-share market. Covid-19 specific drug index rose by about 4.5% to a new high. The China Meheco Group Co.Ltd(600056) high was sideways. It rose again at the end of the day, winning 11 boards in the past 14 days. At the same time, large market value specialty drug companies also experienced a violent pull market. The trading limit of Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) was quickly closed at the end of the trading day, and the trading limits of Guangdong Zhongsheng Pharmaceutical Co.Ltd(002317) , Jinghua Pharmaceutical Group Co.Ltd(002349) and Jinghua Pharmaceutical Group Co.Ltd(002349) all rose continuously Apeloa Pharmaceutical Co.Ltd(000739) , Tianjin Chase Sun Pharmaceutical Co.Ltd(300026) , Fujian Cosunter Pharmaceutical Co.Ltd(300436) , Zhe Jiang Hua Hai Pharmaceuticalco.Ltd(600521) , etc. followed the trend.
Over the weekend, the news about the expected price reduction of upstream materials of new energy vehicles was fermented, and the market expectation of the weakening effect of the industry due to the price rise of materials began to weaken. Mainstream battery manufacturers such as Byd Company Limited(002594) , Contemporary Amperex Technology Co.Limited(300750) opened higher in the morning, but the overall intensity was poor, and all fell in the afternoon Contemporary Amperex Technology Co.Limited(300750) closed up 1.86%, and Byd Company Limited(002594) rose more than 6% and closed up 4.64% Ganfeng Lithium Co.Ltd(002460) , Qinghai Salt Lake Industry Co.Ltd(000792) , Zhejiang Huayou Cobalt Co.Ltd(603799) , etc. all rose.
Biological breeding also performed well on March 21, with the index up about 5% and the pig industry up 3.7% Heilongjiang Agriculture Company Limited(600598) , Tech-Bank Food Co.Ltd(002124) , Shandong Delisi Food Co.Ltd(002330) , etc. The coal mining index rose by more than 2%, and China Shenhua Energy Company Limited(601088) , Shaanxi Coal Industry Company Limited(601225) , Yankuang energy, China Coal Energy Company Limited(601898) , Shanxi Coking Coal Energy Group Co.Ltd(000983) generally rose. The cement, insurance, securities, banking and other indexes led the decline, all falling by more than 1% China Merchants Bank Co.Ltd(600036) , Bank Of Hangzhou Co.Ltd(600926) fell nearly 3% Citic Securities Company Limited(600030) , China Life Insurance Company Limited(601628) , Ping An Insurance (Group) Company Of China Ltd(601318) , Ping An Insurance (Group) Company Of China Ltd(601318) all fell, and China stock market news was sold more than 1.5 billion yuan by the main force, closing down 3.62%.
Overall, on March 21, A-Shares rose more and fell less. More than 3200 shares rose during the day, and nearly 140 shares rose by the daily limit, which has a better profit-making effect. The Shanghai Composite Index closed up 0.08%; Gem index rose 0.46%; The Shenzhen Composite Index rose 0.41%, and the turnover between the two cities exceeded 1 trillion yuan. It is worth noting that the northbound funds accelerated their departure in the afternoon and sold a net 8.419 billion yuan throughout the day, including 4.953 billion yuan for the Shanghai Stock connect and 3.465 billion yuan for the Shenzhen Stock connect.
investment suggestions focus on three directions
“The market hot spots rotate frequently, the weight performance is good and bad, and the lack of sustainability leads to the weak rise of the index, which is difficult to effectively drive the market trading volume. The repetition of the market leads to the difficulty of continuous attention of funds, indicating that the continuity of short-term rebound may not be strong.” After hours analysis on March 21, Li Xiangmei, an investment consultant of Yuanda, said that the shock rebound after 3023 points continued, but the resilience gradually weakened. In the past three days, it was almost in a “static” state, and the trading volume decreased in turn. The short-term rebound may reach the bottleneck period, with the risk of small-level weakening. Pay attention to the current shock range of 3210 points – 3270 points.
“A large-scale breakthrough indicates that the short-term rebound may continue, and a fall below indicates that the current rebound trend is further weakened, or there is a risk of continuing to fall or even double bottom. Coupled with the recent sharp selling of northbound funds, it shows that incremental funds are still on the sidelines, or take the current rebound as an opportunity to adjust positions and exchange shares. We can also see more and move less, and take the rebound to adjust positions as the current strategy.” Li Xiangmei further analyzed and said.
“With the external trend towards regional easing, the landing of the Fed’s interest rate increase and the policy bottom signal released by China’s finance for the meeting, before the market bottom and economic bottom appear, we can not pay too much attention to the gains and losses in the short term, but should pay more attention to the investment opportunities in the medium and long term.” Li Xiangmei suggested that the main line of steady growth should be deeply explored, such as traditional infrastructure and real estate; New infrastructure directions, such as scenery storage, digital economy, new energy vehicles, etc., which help the high-quality transformation and development of the economy, as well as pharmaceutical segments that escort steady growth.
China International Capital Corporation Limited(601995) judged that although the market still has repeated risks in the short term, there is no need to be overly pessimistic about the future performance of a shares. In the near future, the market may be in the bottom grinding period, the trading volume may shrink, and the stage similar to the sharp decline in the early stage may have ended. It suggests that investors should pay attention to three directions: 1) potential supporting areas for policy development, including infrastructure; 2) In 2021, for the middle and lower reaches consumption with more adjustments, low valuation and clear medium and long-term prospects, choose stocks from bottom to top, including medicine; 3) The manufacturing growth sector, including new energy vehicles, new energy and technology hardware semiconductors, has released some risks, and the turnaround is waiting for the marginal mitigation of overseas “inflation” risk.
