The 300 billion dragon head of coal flying color dance rushed to the limit! Organization: in the “grinding period” from the end of policy to the end of market, we need to be patient!

Today, the three major A-share indexes returned to adjust the pattern. Heavyweight sectors such as medicine, new energy and infrastructure fell, dragging down the index, and the Shanghai index competed around the 3200 point mark.

Figure: performance of major A-share indexes today

Boosted by the surge in commodity prices and the growth in the first quarter results of related enterprises, the resource sector bucked the trend today, with coal and non-ferrous metal sectors leading the rise, and the leading non-ferrous metal with a market value of 300 billion Zijin Mining Group Company Limited(601899) approached the daily limit.

The game of short-term funds is fierce. Capital construction led the rise Xinjiang Guotong Pipeline Co.Ltd(002205) today, the stock price fluctuated violently. The stock price first touched the limit, then hit the limit, and then hit the limit again, staging a rare trend of “heaven and earth”.

“coal flying color dance” reappearance

Resource sector is the strongest main line of today’s disk. Divided by Shenwan industry, coal and non-ferrous metals closed up 3.82% and 2.19% respectively, ranking the top two of all primary industries.

The soaring price of related commodities is an important reason for the rise of resource stocks.

As of today’s close, China’s commodity futures market has been mixed, with crude oil and base metals leading the rise. Shanghai nickel, fuel oil and crude oil rose by more than 5%, asphalt and low sulfur fuel oil rose by nearly 4%, and Shanghai zinc rose by more than 3%; Precious metal prices rose, with Shanghai silver rising by more than 1% and Shanghai Gold rising by nearly 1%.

The first quarter results of leading resource companies are beautiful, which also promotes the expected warming of relevant sectors.

As the company with the largest market value in the non-ferrous metal sector, Zijin Mining Group Company Limited(601899) rose by more than 9% in intraday trading and closed up by 7.28%. The whole day turnover was 5.134 billion yuan, and the latest market value rose to 322.3 billion yuan. Since the bottom in mid March, Zijin Mining Group Company Limited(601899) share price has continued to rise, with a cumulative rise of more than 30% in the past month.

After hours on April 11, Zijin Mining Group Company Limited(601899) disclosed that in the first quarter of 2022, the revenue in a single quarter was 64.771 billion yuan, a year-on-year increase of 36.35%; The net profit attributable to shareholders of listed companies was 6.124 billion yuan, a year-on-year increase of 143.88%. The company said that during the reporting period, the company made great efforts to overcome the external environmental impact such as covid-19 epidemic and geographical conflict, grasped the favorable opportunity of high metal prices, focused on the annual production target, carefully organized production, and the company achieved another good performance in production and operation, successfully realizing the “open door red” in the first quarter.

Gold, copper and zinc are the core minerals of Zijin Mining Group Company Limited(601899) . According to the information disclosed by the company, key projects such as the upper belt of peji copper and gold mine in Serbia, kamoa kakula copper mine and Julong copper mine in Tibet have been successfully put into operation. In the first quarter of this year, the company’s mineral gold output increased by 17%, mineral copper output increased by 53% and mineral zinc output increased by 12%.

Guosen Securities Co.Ltd(002736) commented that Zijin Mining Group Company Limited(601899) overcame multiple challenges such as the epidemic and achieved the completion and operation of a number of major flagship projects beyond expectations. The volume of core mineral products is just in the historical high range of bulk metal prices, and the performance is expected to show explosive growth. 2021 is the year with the best performance in the company’s history, and it is expected to achieve substantial growth on this basis in 2022.

In addition to Zijin Mining Group Company Limited(601899) , China Coal Energy Company Limited(601898) with a market value of 100 billion disclosed the pre increase announcement of the first quarterly report on Monday. Recently, the share price has gained two consecutive boards, becoming the leading gainer in the coal sector.

China Coal Energy Company Limited(601898) announcement shows that the company is expected to achieve a net profit of 6.45 billion to 7.13 billion yuan in the first quarter, with a year-on-year increase of 83.8% to 103.2%. Even in terms of the lower limit of growth, China Coal Energy Company Limited(601898) the performance in the first quarter of this year will be the best since listing, and exceeded the previous expectations of some institutions.

Xinjiang Guotong Pipeline Co.Ltd(002205) staged “heaven and earth board”

Although the recent market index continued to fluctuate at a low level, the short-term capital sentiment remained high, and even board bull stocks were born on topics such as infrastructure, anti epidemic and logistics. However, due to the rapid rotation of hot spots, once the enthusiasm of funds retreats, the short-term fluctuations of individual stocks are also very intense.

As the leader of the recent capital construction theme, Xinjiang Guotong Pipeline Co.Ltd(002205) previously, the share price gained 6 boards in 7 days, and the short-term is approaching to double. However, in the past two days, the mood of infrastructure stocks has ebbed, and the Xinjiang Guotong Pipeline Co.Ltd(002205) chips have obviously loosened.

This morning, Xinjiang Guotong Pipeline Co.Ltd(002205) sharply opened higher and inertia touched the daily limit, which is likely to continue the trend of connecting the board; However, the chips became loose half an hour after the opening, and a large number of short-term profit margins were sold at a high level, causing the company’s share price to fluctuate and fall. After a wide range of shocks, it hit the limit in the afternoon, showing a “sky floor” trend.

However, the story is not over. After temporarily blocking the limit, short-term funds entered the market to copy the bottom, pushing the share price to open the limit and pull up in a straight line. It touched the limit again in less than 10 minutes, staging a rare trend of “heaven and earth”. As of the close of the day, Xinjiang Guotong Pipeline Co.Ltd(002205) reported 18.85 yuan / share, up 2.45%, with a turnover of 2.109 billion yuan and a turnover rate of 58.95%.

Xinjiang Guotong Pipeline Co.Ltd(002205) is mainly engaged in the manufacture, transportation and related services of cement products such as prestressed steel cylinder concrete pipe (PCCP), various water pipelines and their special-shaped pipe fittings and accessories, reinforced concrete segments (shield segments). In the latest announcement of stock changes, the company said that the company’s recent operation and internal and external business environment have not changed significantly; The company, the controlling shareholder and the actual controller have no major events that should be disclosed but not disclosed about the company, or major events in the planning stage.

The dragon and tiger list released by the exchange shows that hot money constitutes the main trading force of Xinjiang Guotong Pipeline Co.Ltd(002205) recently. In the three-day list released on April 11, the top five of Xinjiang Guotong Pipeline Co.Ltd(002205) trading are all brokerage seats, among which China Merchants Securities Co.Ltd(600999) trading unit (353800) and Ningbo Sangtian Road Business Department of Guosheng securities are frequently active hot money seats recentlyP align = “center” figure: Xinjiang Guotong Pipeline Co.Ltd(002205) 4 April 11

In addition to Xinjiang Guotong Pipeline Co.Ltd(002205) , the share price of Andon Health Co.Ltd(002432) today, the leader of anti epidemic theme, rose again, with a cumulative increase of more than 10 times since November last year; The stock prices of Zhangjiagang Freetrade Science & Technology Group Co.Ltd(600794) , China Railway Materials Company Limited(000927) and China Railway Materials Company Limited(000927) , etc. with the theme of logistics have been rising continuously in recent days and have not been disturbed by the market.

“bottom grinding period” needs more patience

In the view of institutional people, the recent A-share market is in the bottom grinding period of “from the bottom of the policy to the bottom of the market”. The stage with the largest decline slope of the market may have passed, and structural opportunities begin to appear gradually. Investors need to be patient and gradually lay out the direction with strong certainty.

China Securities Co.Ltd(601066) strategy chief Chen Guo said that the current A-share policy bottom has been further confirmed, and the steady monetary policy continues to be fully, accurately and forward, but it still needs to wait for a clearer signal of fundamental repair before the market can get out of the grinding bottom period and usher in a rebound.

Historically, the relative excess returns of financial stocks and stable style in the bottom grinding period are higher, while the performance of growth style is higher in the rebound period.

Chen Guo believes that the current stock price ratio has been high, but it may need to change hands fully. At present, the equity risk premium has reached the high point of 90% quantile in recent seven years, and the valuation of the market index has been adjusted to the level of the end of 2019, but the turnover rate has not reached the bottom. Most institutional investors still hold a neutral attitude towards the market, and the release of market sentiment is not complete. After the full turnover of the market, the bottom characteristics may be clearer.

“Generally speaking, we believe that the market is in the bottom grinding period from the medium-term perspective. At this time, investors should be patient and should not rush forward and wait for opportunities. If there is a significant adjustment in the market, they can also gradually layout. The layout direction focuses on early cycle varieties (real estate chain, etc.). If the subsequent US bond interest rate stabilizes, we can consider gradually increasing the allocation of growth.” Chen Guo stressed.

Sealand Securities Co.Ltd(000750) strategy chief Hu guopeng also believes that at present, A-Shares are in the bottom grinding period of “from the bottom of the policy to the bottom of the market”. Although the yield of the broad-based index during this period is weak and accompanied by the compensatory decline of strong industries, the stage with the largest decline slope of the market has passed, and structural opportunities begin to appear gradually. The sector with clear policy expectations and the most deterministic performance is the main line leading the rise in this period.

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