On Tuesday, the three major A-share indexes continued to consolidate. As of the close, the Shanghai Composite Index fell slightly to 319403 points; The Shenzhen Component Index fell 0.50% and the gem index fell 1.38%. The scale of market transactions continued to shrink, with less than 800 billion yuan for two consecutive days.
On the disk, the trend of each sector is divided: chemical fertilizers and pesticides, coal, oil and natural gas, etc. rose sharply; The real estate sector rebounded; Semiconductor, “Ning portfolio”, CRO, insurance and vaccine sectors were adjusted. In addition, northbound funds resumed trading yesterday, with a net sale of 1.944 billion yuan throughout the day, including a net sale of 2.264 billion yuan by Shanghai Stock connect and a net purchase of 321 million yuan by Shenzhen Stock connect Kweichow Moutai Co.Ltd(600519) led with a net purchase of 730 million yuan, and China Merchants Bank Co.Ltd(600036) was sold for 1.308 billion yuan.
According to the data of China stock market news choice, in March this year, the transaction amount of A-Shares exceeded 1 trillion yuan in 12 trading days; As of yesterday’s closing, the turnover exceeded trillion yuan in only one trading day in April, and the turnover has been less than 800 billion yuan for two consecutive days. For the daily contraction of transaction volume, market analysts believe that first, due to Festival factors, northbound funds had been suspended for three trading days; Second, the external environment of the market has been disturbed recently, and the capital sentiment is relatively low.
Meng Lei, China strategy analyst at UBS Securities, said that from the perspective of capital, there is still a lack of new capital increase in the A-share market. As of April 15, only 5.7 billion yuan of equity and hybrid public funds had been newly issued this month, further down from 38.7 billion yuan in March and 19.9 billion yuan in February. Since the return performance of public funds is the leading indicator of their fund-raising situation, many public funds have suffered a withdrawal of more than 10% since the beginning of the year.
From the emotional point of view, the A-share market may still be in a volatile situation in the short term Central China Securities Co.Ltd(601375) said that the trading volume of the two cities shrank and the stock game characteristics were significant. At present, the conversion of leading hot spots is still relatively frequent, the market lacks obvious profit-making effect, and investors are in a heavy mood to wait and see with money. It still needs external force to break the market situation in the future.
China International Capital Corporation Limited(601995) strategy team believes that some of the current market concerns have been actively resolved by policies, but there are still fundamental concerns. In the process of improvement, the short-term market may still repeat, and the follow-up may gradually enter the bottom grinding stage, and the trading volume may shrink.
For the future, institutions generally said that the market will maintain range shocks, and it is suggested to pay attention to the relevant industrial chains of “stable growth”.
Chuancai Securities said that it pays attention to national support and key development directions. First, for the infrastructure industry chain related to “steady growth”, there is a large increase in infrastructure investment throughout the year. The overall valuation of the superimposed industry is low and has high allocation value. We can pay attention to new and old infrastructure; Second, the agricultural sector, especially food security; Third, the energy industry chain. Under the background of the alternation of traditional energy and new energy, it is particularly important to keep “energy security”, and there are certain allocation opportunities in the industry.
Haitong Securities Company Limited(600837) said that the index level showed that the market adjustment had been relatively significant. At present, the valuation of CSI 300 is close to the beginning of 2019, and the valuation of gem index is lower than that at the beginning of the epidemic in March 2020. It is expected that this year’s market style is similar to that of 2012, with value stocks slightly dominant and growth stocks expected to be dominant in stages.
Sealand Securities Co.Ltd(000750) indicates that the current A shares are still in the bottom grinding period. There have been a series of positive changes in China’s policies, including the first reduction of reserve requirements during the year, and the gradual mitigation of China’s supply chain impact. In terms of industry allocation, we continue to be optimistic about infrastructure, real estate and other fields related to “stable growth”, and periodically participate in the post cycle and some consumption sectors.
