CSI 300 fell by 2.29%
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This week, the A-share market maintained its uptrend, but major indices generally saw pullbacks. Specifically, SSE Index(000001) fell by 1.6%, CSI 300(000300) by 2.29%, Shenzhen Index(399001) by 2.65%, and the ChiNext(399006) experienced the largest decline of 3.34%. Despite the overall positive market trend, short-term adjustments may reflect investors’ cautious sentiments towards policy aspects, economic data, and uncertainties in external markets.
In terms of market turnover, despite the general pullback in indices this week, there was no significant increase in volume. Compared to last week, the trading volumes for both the SSE Index and the CSI 300 slightly decreased to 0.95 times and 0.90 times respectively, indicating a cautious market sentiment. Meanwhile, the Hang Seng Index(HSI) fell by 1.13% this week but reached a new annual high, showing relative strength in the Hong Kong stock market, with some funds possibly continuing to flow in.
On the macroeconomic front, China’s total social electricity consumption in February increased by 8.6% year-on-year, significantly rebounding from the previous value of 2.8%, indicating a recovery in domestic economic activities. Additionally, CITIC Securities noted that the transition between old and new growth drivers has begun to show results, predicting that Q1 GDP growth could achieve a “good start”, which would help boost market confidence.
Regarding external markets, the Federal Reserve’s March interest rate decision remained at 4.5%, meeting market expectations. However, US retail sales data for February was lower than expected (actual 0.2% vs expected 0.6%), potentially adding uncertainty to economic growth prospects. Furthermore, US EIA crude oil inventories for March were significantly higher than expected, increasing market concerns about future energy demand. The Nasdaq Composite(0NDQC) dipped slightly by 0.35% this week, while the S & P 500 Index(0S&P5) rose against the trend by 0.42%, demonstrating resilience in the US stock market.
Looking at industry performance, the Oil&Gas-Field Services(G1380IG.CN) stood out the most this week with an increase of 8.04%, mainly benefiting from investment demand growth driven by fluctuations in international oil prices. It was followed by the Retail/Whlsle-Bldg Prds(G5211IG.CN), which gained 7.66%, primarily due to the recovery in construction and infrastructure investments. The Oil&Gas-Machinery/Equip(G3533IG.CN) also performed well with a gain of 6.3%, thanks to increased demand for equipment in the oil and gas sectors.
The average change in TOP33 stocks this week was -3.27%, with 7 stocks rising and 26 declining. Dawei Technology(Guangdong)Grp Co Ltd(600589) became the best-performing stock among the TOP33 this week, with a weekly increase of 12.01%. Although its industry, Chemicals – Specialty Chemicals, had a mediocre performance this week ranking 107th, the company itself had a strong RS Rating (98), indicating its stock maintained relative resilience in a weak market environment.
Next week, the market will enter earnings season, with 721 companies in the A-share market set to release their financial reports. Investors need to closely monitor the impact of these reports on individual stocks and industries, using O’Neil Scores and Accumulation/Distribution Ratings to select quality targets. Against the backdrop of market adjustments, industry leaders and high-scoring stocks still hold considerable allocation value.
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Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.
published on March 21, 2025