Trend review:
After opening slightly higher today, the Shanghai Composite Index rose by 1% in the morning, but fell again in the afternoon. The Shenzhen composite index continued to be weaker than the Shanghai Composite Index. The whole day composite index closed down by 1.44% to 288643, lost 2900 points, and the Shenzhen composite index fell by 1.66% to 1020664 points. In terms of industries, most industries fell, and only six industries rose, led by food and beverage (+ 1.53%), construction (+ 1.21%) and consumer services (+ 1.09%), while textile and clothing (- 5.56%), national defense industry (- 4.63%) and coal (- 4.37%) led the decline. The turnover of the two cities was 826321 billion yuan, the index closed at the negative line, the main stock indexes hit a new low in this round of adjustment, the market sentiment fell to the freezing point, and the rebound may come at any time.
Market focus:
After yesterday's sharp decline, only a small number of stocks still focused on the hot spot of the stock market, but the performance of the stock market fell to 50. As of the closing, the trading limit was still concentrated in sectors such as large consumption and performance pre increase, and the concepts of Daji construction and covid-19 also had sporadic performance. After Monday's sharp fall, without the stimulus of more than expected policies, the market is difficult to reverse the V-shape and continue to look for support in the short term.
Under the impact of the recent rise in the tightening expectation of the Federal Reserve, the severe epidemic situation in China and the increasing performance pressure of listed companies, the market has fallen sharply in a row recently, the overall valuation of A-Shares is close to the historical low, and the sentiment may have fallen to the freezing point. We maintain our previous judgment that the market is still in the bottom grinding stage. After panic selling, the market probability has been very close to the medium and long-term bottom position of a shares. At this stage, we still suggest to focus on large cap value stocks with better defense ability and valuation repair space. At the same time, the expectation of post epidemic recovery is taking shape. We suggest to continue to pay attention to the recovery of supply chains across the country. On the whole, the value style is still dominant. The growth sector needs to focus on the changes in fundamentals. In the short term, the performance pre increase and the sector benefiting from RMB devaluation have been continuously concerned by the market.
Risk tip: global economic recession risk, Fed tightening risk and epidemic spread risk.
