Today’s market is like the autumn weather, with bursts of sunshine and rain. All three major indices rose, but the stocks in hand mostly fell. What is going on with this market?
At 3 PM, the A-shares closed. Today’s battle between bulls and bears was dazzling. Surprisingly, the market closed in the green, with the Shanghai Composite Index rising by 0.22% to close at 3828.58 points; the Shenzhen Component Index performed even stronger, rising by 0.67%; the ChiNext also followed suit, increasing by 0.55%.
The most eye-catching was the STAR Market 50 Index, which surged over 3%, thanks to the chip concept stocks!
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01 Sector Performance
Today’s sector performance was like ice and fire. The chip industry chain continued its strong momentum, precious metals shone brightly, and consumer electronics also performed actively.
On the decline list, it was a bit grim: the film and tourism sectors plummeted, with Golden Eagle Media hitting the daily limit down. The liquor, media, and retail sectors were also lackluster.
02 Chip Carnival
The chip sector was having a carnival today! Demingli hit a historical high with two consecutive limit-ups, and Chipone Technology reached a 20% limit-up, setting a new high.
Several chip concept stocks, including SMIC, Haiguang Information, and Jiangbolong, surged to historical highs. Led by these chip concept stocks, the STAR Market 50 Index once rose over 4% during the day, making it the brightest star today!
03 Golden Moments
Influenced by the new highs in spot gold, the gold sector strengthened in the closing hours. Xiaocheng Technology and Zhongjin Gold quickly surged, with Hunan Silver hitting the daily limit up. The precious metals sector was strong throughout the day, becoming a safe haven for funds.
04 The Secret of Trading Volume
Today’s trading volume in both markets reached 2.12 trillion yuan, a decrease of 202.3 billion from the previous trading day. However, this marks the eighth consecutive trading day that the trading volume in the Shanghai and Shenzhen markets has exceeded 2 trillion yuan. Although the volume decreased, market activity remains present.
In the first hour, the trading volume decreased by 113 billion yuan, indicating that everyone is watching from the sidelines!
05 More Stocks Declining than Rising
Despite the indices being in the green, more stocks fell than rose. In the morning session alone, 1821 stocks rose, with 54 hitting the daily limit up; however, 3232 stocks fell, with only 4 hitting the daily limit down.
By the close, the situation had not improved much, with over 3100 stocks in the red. It was like a lively banquet; it looked bustling, but many were left hungry.
06 Pre-Holiday Effect
Zhongshan Securities stated that before and after the National Day holiday, financing typically shows a pattern of “contraction before the holiday and explosion after the holiday.” The market trend before the National Day holiday is often relatively flat, while after the holiday, market risk appetite shows significant improvement.
So, the current oscillation and consolidation can be considered a normal pre-holiday performance!
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As the market closes, take a look at the stocks in hand. Are they once again in the situation of “the index rose but no profit”? The current market is a structural one, with funds concentrated in a few sectors, such as chips, gold, and consumer electronics, while other sectors can only sip soup.
Brokerages suggest maintaining a sideways mindset in the short term, focusing on sector rotation, and paying more attention to individual stocks rather than the index. It is highly likely that the market will continue to exhibit rotation characteristics before the holiday, so we retail investors should maintain our composure and avoid chasing highs and cutting losses!