Home » Mixed Performance in A-Share Indexes as Individual Stocks Experience Volatility

Mixed Performance in A-Share Indexes as Individual Stocks Experience Volatility

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Major A-share indexes experience mixed performance on July 21, with the Shanghai Index and Shenzhen Component Index seeing a slight decrease of 0.06%, while the ChiNext Index rises by 0.35% at the close of trading. According to Wind data, individual stocks saw more declines than gains, with 2,800 individual stocks in the two cities experiencing falls.

In the real estate sector, several stocks such as Rongsheng Development and Dalong Real Estate rose by the limit, while Huayuan Real Estate and China Fortune Land Development emerged as top gainers.

Grain concept stocks were also active, with Black Sesame and Wanfang Development reaching the daily limit, and Shennong Technology and Nongfa Seed Industry experiencing a rise of over 5%.

Liquor concept stocks witnessed an increase, with Dahu shares rising by over 7%, and Golden Seed Liquor and Laobaigan Liquor following suit.

Conversely, the reducer sector pulled back, with stocks like KONE Technology and Zhongdaide falling by the limit, and Demax, Haozhi Electromechanical, Youde Precision, and others experiencing declines of over 10%.

On the capital flows front, Wind data reveals that northbound funds concluded the day with a net purchase of 5.825 billion yuan. Among them, the net purchase of Shanghai Stock Connect stood at 3.993 billion yuan, while the net purchase of Shenzhen Stock Connect reached 1.832 billion yuan.

Food and beverage, real estate, pharmaceutical, and biological sectors witnessed a continuous inflow of main funds during late trading, while sectors like power equipment, mechanical equipment, and non-ferrous metals saw an outflow.

In terms of institutional viewpoints, Open Source Securities states that the recovery slope of current consumption remains relatively flat, and with the steady growth of grain, oil, food, tobacco, and alcohol data, it is anticipated that sales may be strong during the upcoming Mid-Autumn Festival and National Day. Therefore, they suggest that high-end liquor and leading real estate liquor companies can be considered for deployment throughout the year.

CITIC Securities predicts rapid development for the wind power industry in the second half of 2023, especially with large-scale wind turbines and the clear trend of COSCO and export demand. They recommend investing in parts manufacturers benefiting from export demand growth, as well as submarine cables, pile foundations, bearings, and main shafts that possess resistance to value “deflation.” Additionally, they highlight the importance of focusing on the optimization of the “double sea” structure and high-quality complete machine factories with first-mover advantages in offshore wind power and wind turbine business.

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According to CICC, aviation stocks remain at a low point in terms of stock prices, and as the negative factors are gradually released, the summer sports drive is expected to push prosperity upward. They anticipate that airline profits in the third quarter of 2023 will far exceed the levels of the same period in 2019, leading to a potential double recovery of profit and valuation for aviation stocks. Therefore, they suggest actively seizing the opportunity for bottom layout in this sector.

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