On May 5, the stock index rose strongly in the intraday shock, with an intraday rise of more than 1% and a slight narrowing in the afternoon; The Shenzhen Component Index rose and fell during the session, while the gem index showed a relatively weak trend. It once fell more than 3% in the morning, and then bottomed up and the decline narrowed; The turnover of the two cities exceeded 900 billion yuan, and the net sales of funds from the North exceeded 2.3 billion yuan.
As of the close, the Shanghai index rose 0.68% to 306776 points, the Shenzhen Composite Index rose 0.23% to 1104638 points, and the gem index fell 1.33% to 2288.4 points; The total turnover of the two cities was 901 billion yuan, and the net sale of funds from the North was 2.362 billion yuan.
On the disk, home furnishings, agriculture, food and beverage sectors rose sharply, while chemical, textile and clothing, medicine, automobile, building materials, electric power, petroleum, household appliances, wine making, insurance, steel and other sectors strengthened; The trend of securities companies, tourism, hotels and catering sectors is weak; Covid-19 detection concept stocks rose sharply, and topics such as seed industry, agriculture, covid-19 drug concept and cold chain logistics were active.
Regarding the current market trend, Huaxi Securities Co.Ltd(002926) pointed out that since April, China’s epidemic situation, supply chain impact and lack of confidence in steady growth have suppressed market risk appetite. After the concentrated release of pessimistic expectations, the valuation level of A-Shares fell back to an all-time low. At present, the allocation cost performance of the equity market gradually appears. There is no need to be pessimistic when the Shanghai stock index is below 3000 points. The Politburo meeting made it clear that the general tone of the policy of steady growth will continue. In the follow-up, with the improvement of the epidemic situation in China, the optimization of epidemic prevention and control, and the continuous efforts of policies in infrastructure, consumption, real estate and other fields, the stage with the greatest impact of the epidemic is gradually passing, and the market sentiment is expected to be repaired. In the market style of May, the blue chip sector with high dividend and value is recommended. Specific to the industry, pay attention to two main investment lines: first, those benefiting from stable growth policies, such as “banking, real estate and building materials”; Second, some consumer goods benefiting from the marginal improvement of China’s epidemic situation, such as “food and beverage”.
China Industrial Securities Co.Ltd(601377) said that price is more important than time. High quality assets with valuation adjustment in place and profit expectation correction in place will be the first to stand out from the bottom. In combination with the first quarterly report and the prospect of future prosperity, focus on the following three directions: 1) consumption of core assets (alcohol, tax exemption, aviation, scenic spots and hotels): on the one hand, benefit from the gradual improvement of China’s epidemic situation. On the other hand, the share price and valuation of the sector have been at a low level, and the internal and external uncertainties can be attacked and retreated. 2) “Steady growth” sector (infrastructure, real estate, banking, etc.): the meeting of the Chinese Finance Committee called for “comprehensively strengthening infrastructure construction”. The meeting of the Political Bureau stressed “striving to achieve the expected objectives of economic and social development throughout the year”, and the policy continued to increase. At the same time, the global market is still in a mess of high volatility and low risk appetite. Infrastructure, real estate, banking and other sectors are both security and policy driven. 3) In the “new half army”, the direction of strong immunity and maintaining high prosperity (new military materials, photovoltaic modules, wind power machines, semiconductor materials, 5g optical fiber and cable, UHV): combined with the certainty of valuation and performance, as well as the judgment of the leading indicators of our “new half army” timing framework, the science and technology growth sector is expected to usher in a wave of repair window in May.
