(Original title: The three major A-share indices fluctuated and sorted out monkeypox prevention and control concept stocks soaring)
On May 23, the three major stock indexes fluctuated and dropped in early trading. The Shenzhen Component Index and the ChiNext Index once fell by about 1%, but stopped falling and rebounded in the afternoon. The Shanghai Index turned red near the end of the session, and the decline of the Shenzhen Component Index and ChiNext Index narrowed significantly; The two cities traded about 860 billion yuan a day, and the net sales of northbound funds exceeded 5 billion yuan.
As of the close, the Shanghai Composite Index fell 0.01% to 3,146.86 points, the Shenzhen Component Index fell 0.06% to 11,447.95 points, and the ChiNext Index fell 0.3% to 2,410.12 points; the two cities had a total turnover of 859.7 billion yuan, and northbound funds sold a net 5.744 billion yuan.
On the disk, monkeypox prevention and control concept stocks soared, media, agriculture, and automobile sectors rose sharply, and steel, nonferrous metals, pharmaceuticals, logistics, software, coal, oil, food and beverage sectors all strengthened; insurance, real estate, electricity, banking, Construction, winemaking and other sectors weakened; lithium ore, intellectual property, new crown testing, fertilizers, and phosphorus concepts were active.
China Merchants Securities pointed out that since the beginning of the year, the A-share market has experienced three waves of decline-rebound market: the main line of rebound is from old infrastructure – real estate – (repair after the epidemic, in mid-April, mainly social services, food and beverage) – high prosperity track share. As far as this round of oversold rebounds on the high-boom track is concerned, the emotional-level oversold rebound on the high-boom track is expected to come to an end, and the follow-up rebound needs to pay attention to the improvement of incremental funds.
For the market reversal, A shares still need to wait for a clearer right-side signal, which is currently in the low balance area. We have always believed that the inflection point of domestic fundamentals’ molecular-end profit expectations is the primary core signal of market reversal. The market always expects “real moves” and “real moves” from the policy side to effectively reverse the current domestic fundamental expectations. “Good move”. At present, we suggest that “heart to the light” and look forward to “or leap into the abyss” in the second quarter. Regarding the current four main lines of “stable growth, high prosperity, post-pandemic recovery, and global inflation”, we believe that “stable growth” is still the main front (positional warfare, it is not appropriate to switch back and forth).
Minsheng Securities said that after a rebound of nearly a month, some of the growth sectors are close to the historical rebound and have exceeded the historical center, but it may be the “reversal illusion” caused by the previous decline exceeding the historical average. It is worth noting that in this round of rebound, the extent of the fund’s performance differentiation and convergence since the beginning of this year has obviously not kept up with the degree of convergence of asset prices, and “position covering” constitutes a potential reason.
Last week’s asset price performance seemed to be “robust”, but in fact it was “calm”. The preset path of fundamentals is no different from the previous one: the growth rebound is coming to an end, and it is only possible to choose sub-sectors where supply and demand are independent of inflation. The real cycle is coming back, grasping the certainty of energy, the resilience of metals and the importance of energy transport. Recommended: Oil & Gas, Aluminum, Copper, Coal, Oil Transportation, Gold, Real Estate, Fertilizer and Banking.