On Monday, Shanghai and Shenzhen A shares opened lower and went higher, led by tourism, electrical equipment and chemical industry, while food and beverage, medicine and media led the decline. On January 24, the Shanghai Composite Index rose 1.54 points, or 0.04%; The Shenzhen Component Index rose 52.25 points, or 0.37%; The gem index rose 21.75 points, or 0.72%; The CSI 300 index rose 7.43 points, or 0.16%. For the short-term market, insiders believe that despite the sharp decline of US stocks on Friday, A-Shares have strong toughness on Monday. However, with the approaching of the long Spring Festival holiday, the market trading tends to be light, and the turnover of the two cities has decreased significantly. Investors should continue to avoid the risk of high-level theme stocks in operation.
new energy sector rebounded
U.S. stocks have fallen one after another recently. Last Friday, the three major indexes of U.S. stocks collectively closed down. Both the S & P 500 index and the NASDAQ index recorded the largest weekly decline since late March 2020. The NASDAQ index has fallen by 11.99% since January this year, the worst since 1972. Industry insiders believe that the yield of US bonds rose sharply last week, and the rise in interest rates continued to exert downward pressure on technology stocks and high growth stocks by reducing the attractiveness of future profits of enterprises, and then formed downward pressure on the trend of NASDAQ.
Dragged down by the weakness of the NASDAQ index, the A-share gem has also continued to weaken this year. The gem index has fallen by 8.01% since 2022. However, driven by the strength of the new energy sector on Monday, the gem index fluctuated upward after opening low, closing a small positive line, up 0.72%, stronger than the main board market. In terms of individual stocks, the gem refers to Contemporary Amperex Technology Co.Limited(300750) with the largest component equity, which rose 2.02% on January 24.
From the perspective of sectors, lithium mining, salt lake lithium extraction, silicone and digital currency sectors led the rise of the concept sector, while covid-19 drugs, immunotherapy and generic drugs led the decline. In terms of individual stocks, Guizhou Redstar Developing Co.Ltd(600367) , Zangger mining, Yongxing Special Materials Technology Co.Ltd(002756) , Ganfeng Lithium Co.Ltd(002460) and other stocks rose by the limit.
Industry insiders believe that the rebound of the new energy sector represented by lithium batteries is mainly due to their large recent adjustment and a restorative rebound in share prices.
the main line of the epidemic continues to weaken
While the traditional popular “track” stocks rebounded, the pharmaceutical and medical sectors represented by covid-19 epidemic continued to fall sharply on January 24. Represented by the leading stock Andon Health Co.Ltd(002432) , after the limit fell last Friday, the stock fell to the limit word by word on January 24, and the sealed orders on the limit board increased instead of decreasing. As of the closing, the sealed orders exceeded 38.68 million shares.
Insiders told reporters that the continuous decline of Andon Health Co.Ltd(002432) hit the speculation of the main line of anti epidemic. On the one hand, the cumulative increase of relevant stocks is too large. On the other hand, the changes of relevant news also suppress the main line. Recently, an article on the prediction of the prospect of “covid-19 pandemic” published in the lancet has attracted extensive attention and discussion. Almost at the same time when the article was released, Britain and France said they would gradually relax the epidemic prevention restrictions. The article became a recent blockbuster and triggered a collective drop in the A-share covid-19 detection sector.
The reporter of Dazhong Securities News noted that covid-19 pharmaceutical sector fell by an average of 5.03% on January 24. In terms of individual stocks, Wuhan Hiteck Biological Pharma Co.Ltd(300683) , Xinxiang Tuoxin Pharmaceutical Co.Ltd(301089) , Shanghai Kaibao Pharmaceutical Co.Ltd(300039) , Jinghua Pharmaceutical Group Co.Ltd(002349) and other stocks fell sharply, among which, Jinghua Pharmaceutical Group Co.Ltd(002349) followed the word limit of Andon Health Co.Ltd(002432) .
Although the digital currency sector performed strongly on January 24, the differentiation of individual stocks increased. Leading stocks Jc Finance & Tax Interconnect Holdings Ltd(002530) stopped for seven consecutive days and released a huge amount for two consecutive days. Some stocks with better performance are more low-level make-up varieties.
strengthen defense in the short term
Insiders believe that despite the strong toughness of A-Shares on Monday, the long Spring Festival holiday is approaching, and the market trading tends to be light. Investors should continue to strengthen their defense in operation to avoid the risk of high-level theme stocks.
Huaxi Securities Co.Ltd(002926) an analyst believes that the recent power of incremental funds to enter the market is insufficient, and the market sentiment may be light. Net sales of financing funds for five consecutive weeks, and the proportion of financing purchases in the turnover of A-Shares was 6.67%, which fell below 7% for the first time since 2020, at a low level in recent three years; The A-share equity risk premium is above the median since 2010, and the transaction volume of the A-share market has also shrunk in the past five days, indicating that the risk appetite of the A-share market decreased slightly before the festival. Near the Spring Festival, A-Shares are affected by the disturbance of the Federal Reserve’s monetary policy and the uncertainty of the news before the long holiday. The power of incremental funds to enter the market is insufficient and still shows the characteristics of structural market.
Haitong Securities Company Limited(600837) believes that the spring market of A-Shares has never been absent in the past 20 years, and the spring market with the background of stable growth policy, such as 2012, the end of 2014 – the beginning of 2015 and 2019. The steady growth policy is clear this time. The market background in spring is similar to that in the previous three times. The value and growth are expected to take turns, such as underestimated large finance, real estate and hard technology of new infrastructure.
