Hexun Investment Advisor Li Cong: March 16 Midday Analysis

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March 16 Morning Review. The opening minutes reflect positive developments over the weekend. The Chinese yuan-based Postal Top One character, Sifang Da’s strong opening, and some gains in marine economy quantification. However, previously popular sectors declined again, with electric power core companies like Kangde and Electric Power Construction resisting declines on Friday, while chemical stocks like Jinniu and Chitianhua experienced divergence in their rebound. Domestic computing power was not suppressed; some stocks like Huasheng and Tuowei showed partial recovery during the session, but both were volatile.

All three major indices fell at the open, with the Shanghai Composite reaching support levels, and the ChiNext also finding support at the gap. The early session can be seen as the bottom point of the three indices combined with market sentiment. During such times, it’s important to find contrarian stocks that outperform the indices. In the bullish sectors, Sunlight and Ning Wang failed to lift the renewable energy sector. PCB stocks like Dongshan showed a downward trend during the session but rebounded in the morning, with Huidian also showing support. The most contrarian sector is storage, with Bawei and Demingli continuing to hit new highs. CPO is not the focus today; in the new week, Zhongji leads the top five, with a sustained rally today, but Tianfu’s feedback was poor. Xinyisheng can only be viewed as a primary weight to stabilize the index. The leading stocks in this rebound probably won’t be CPO.

Overall, among the three sectors aligned with the trend, storage stocks are the strongest collectively, followed by PCB. Currently, the market is dominated by institutional-led volatility, making recent sentiment trading very difficult. At the stabilization points of the three major indices, focus on the most resilient institutional sectors that follow the trend, with quick entries and exits.

(Editor: Zhang Yan)

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