Market review: the index recovered, led by power and nonferrous metals
Today, the Shanghai and Shenzhen index recovered and closed up. As of the close, the Shanghai index rose 0.84% to 3597.43 and the Shenzhen index rose 1.39% to 14421.20. In terms of sectors, power equipment, non-ferrous metals and automobiles led the increase, while building materials, steel and real estate led the decline. The turnover of the two cities was 1061.15 billion yuan, an increase of 0.51% over the previous trading day and a contraction of 7.82% over the average of the previous five days. The net purchase of Shanghai Stock connect was 4.783 billion yuan, the net purchase of Shenzhen Stock connect was 2.235 billion yuan, and the net purchase of northbound funds throughout the day was 7.018 billion yuan.
Market focus:
According to the information released by the Bureau of statistics on January 12, in December 2021, the national CPI increased by 1.5% year-on-year. Decreased by 0.3% month on month. PPI increased by 10.3% year-on-year and decreased by 1.2% month on month.
Strategy suggestion: pay attention to the opportunities in the consumption sector
Today, the Shanghai and Shenzhen index showed a trend of recovery. After the opening, it continued to fluctuate higher, and the increase in the late trading further widened. Individual stocks rose more and fell less, with a rise / fall ratio of 3328:1099. The market turnover was basically flat, and the north capital reappeared a significant net inflow, injecting upward momentum into the market. In addition, the track stocks that experienced a deep correction years later made a collective counterattack today, with the concept sectors such as lithium battery and energy storage leading the rise. The leading new energy stocks such as Contemporary Amperex Technology Co.Limited(300750) , Byd Company Limited(002594) closed up sharply, driving the gem index to rise by more than 2.6%. In terms of macro economy, the year-on-year increase of CPI in December announced today narrowed significantly, and the month on month ratio changed from increase to decrease, ending the trend of accelerating the rise for two consecutive months, or mainly due to the increase in the supply of fresh vegetables and pork and the downward drag on oil prices. The decline of PPI accelerated, and the year-on-year decline widened again, or it was mainly affected by the continued stable price of guaranteed supply and weak demand in the off-season. We believe that as the pig price re enters the upward cycle, CPI will show an upward trend in 2022. However, due to the limited upward space of oil price and the high base effect, CPI growth may be relatively stable, while PPI may continue to decline under the continuation of ensuring supply and stabilizing price. However, due to the advance of infrastructure investment and the gradual retreat of seasonal drag, PPI decline may be equally stable in the first quarter. Therefore, we once again emphasize the focus on the investment opportunities brought by the improvement of consumption margin and terminal price adjustment, the consumer sector must be selected for bargain hunting layout, and the social service and transportation sectors that are expected to hit the bottom and recover after the epidemic disturbance subsides.
In terms of the general trend of A-Shares and the sector, the performance of small and medium-sized stocks today was slightly better than that of large blue chips again. Under the favorable industrial policy, the UHV concept sector performed strongly. The covid-19 pneumonia detection sector continued the rise in the previous trading days under the background of the continuous epidemic, and lithium batteries, new energy vehicles and other sectors fought back on a large scale, leading the increase. We believe that the "golden stage" of high boom track stocks may have passed. After continuous correction, the market bottom reading sentiment may drive the periodic recovery of relevant plates, but some sub board blocks with absolute high valuation may still be "too expensive", and the superposition of overseas liquidity recovery may drive the "resonance" fluctuation of internal and external growth plates, High boom track stocks may continue to digest valuations in shocks. On the whole, with the support of industrial logic, we are still optimistic about new energy, photovoltaic and other sectors for a long time. However, from the perspective of cost performance and callback risk, the current allocation opportunities of relevant sectors may not be as good as the required consumption sectors with undervalued values such as traditional Chinese medicine and food processing. It is recommended to adjust our positions reasonably.
