At the beginning of this week, the stock index was depressed by the news that the new policy of tax exemption for purchasing a house in Wuhu, Anhui last weekend had been suspended urgently after being released for three days. The stock index opened sharply lower. However, this news would only constitute a short-term negative effect on the stock index. The significant rise of some individual stocks of electronic information category such as touch screen drove most individual stocks to rebound. After a slight fall in the first two trading days, the electronic information category individual stocks like touch screen concept, Internet of Things, cloud computing etc collectively rose upward on Wednesday and the stock index once again increased with volume, and the SSE Composite Index re-ascended above 2350 points. Subsequently, the SSE Composite Index began to attack the pressure of the half-year line above it, but hotspots in the middle of the market started to gradually retreat. The Internet of Things and touch screen concept individual stocks which continuously strengthened in the previous few days all retreated after ascending. Coal, nonferrous metal and other resource individual stocks also obviously showed signs of weakness due to excessive accumulated trapped chips. Moreover, banking, insurance and other financial weighted individual stocks generally performed flatly. The multiple parties' continuous efforts to break through the pressure of the half-year line of the SSE Composite Index eventually ended in vain. But the weekly lines of both markets still closed positive. The weekly K-line of the SSE Composite Index even closed five consecutive positive lines. On Friday close, SSE Composite Index was reported at 2357.18 points, with a weekly increase of 0.22%, and turnover of RMB 380.523 billion; Shenzhen Component Index was reported at 9615.34 points, with a weekly increase of 0.25% and turnover of RMB 366.719 billion; GEM Index was reported at 717.80 points, with a weekly increase of 2.71%. This week, small and medium-sized capitalization individual stocks overall clearly outperformed weighted individual stocks. The nearly 3% weekly increase of the GEM Index was significantly larger than the main board performance. Except for the ST Shenlong, a newly listed stock resuming trading after reorganization this week, touch screen concept individual stocks without doubt became the biggest highlight of this week. Apple's share price successfully ascended above USD 500 this week, with total market value exceeding the sum of Microsoft and Google, stimulating the substantial speculation of touch screen concept individual stocks within the market. Week-on-week increase of Shenzhen Tianma A reached 28%, while Chaoxing Electronics and Hua Dong Science & Technology's week-on-week increase also exceeded 10%. Internet of Things concept individual stocks performed well midweek. MIIT officially issued "The Twelfth Five-Year Development Plan for Internet of Things" the other day. Multiple Internet of Things concept individual stocks such as Gao Hong Shares, Xiamen Xinda, Xin大陆had a trend of closing limit-up. In addition, the momentum of the oversold individual stocks continued to rotate this week. Some oversold and broken issue price second-new individual stocks surged fiercely. Pangda Group and Lifan Shares both soared more than 20% in one week. Some second-new individual stocks with theme support like shale gas concept individual stock Lankuo Gaoxin even set a new high since listing. In addition, with the gradual decrease of IPO issuance P/E ratio, some fund targets begin to shift towards new shares. The first-day increase of newly-listed shares this week became significantly expanded. Langma Information soared 82.5% on the first day close.
Despite the fact that various classification indices extended the rebound momentum this week and closed with varying degrees of increase, the increasing momentum of the stock index has already shown certain fatigue. Certain hidden concerns were reflected in the capital side. February 15th was the last day for small and medium banks to make up the reserve requirement for the three categories of deposit guarantees including letter of credit guarantee deposits, bank guarantee deposits, and bank acceptance bill guarantee deposits, with over RMB 10 billion of funds being recalled. Plus, China Communications Construction Company’s RMB 5 billion A-share IPO online subscription froze part of the funds. The inter-bank lending market rate continued to rise this week, with the overnight borrowing rate rising continuously for 5 days. Additionally, due to January CPI exceeding expectations and rebounding, the central bank continuously recovered liquidity for three weeks. The tightness of the market capital side then affected the performance of the weighted individual stocks in the A-share market. The GEM Index like small-cap individual stocks also showed certain fatigue in the second half of the week. Intra-market funds began to speculate on a batch of oversold individual stocks lacking fundamental support and newly-listed new shares, second-new share varieties. The meaning of speculative game with existing capital was relatively obvious. From the technical analysis perspective, the half-year line above the SSE Composite Index always suppressed the upward movement of the stock index. Despite repeated support of the stock index near the 10-day moving average line below, the stock index fluctuated in a range under the situation of having pressure above and support below. The fluctuation range is gradually narrowing, and a breakthrough direction needs to be chosen in the short term. Therefore, a certain degree of caution is needed for the future market, waiting quietly for the direction of the stock index operation to become clear.
From the data point of view, in today's A-share transactions, the capital inflow transaction volume was RMB 59.777 billion, the capital outflow transaction volume was -RMB 62.817 billion, the uncertain transaction volume was RMB 4.392 billion, and the difference between inflow and outflow transaction volumes was -RMB 3.04 billion, accounting for 2.34% of the entire market transaction volume. Compared with the previous two days, today's market clearly contracted in volume. The bulls also appeared rather hesitant in their attacks, and the market trend approached the end of the ascending wedge. There is a relatively large possibility of adjustment in the short term. If the market really adjusts, the extent of this adjustment will have a major impact on the height of this big rebound trend. The shallower the adjustment, the greater the mid-term space for the market. Of course, all this depends on the trend next week. Short-term traders can appropriately avoid the impact of this pullback and stop some profit-taking positions.
The top five sectors with net inflows in the two markets today were: beverage manufacturing, real estate development and operation, banking, securities and futures, tourism.
The top five sectors with net outflows in the two markets today were: electronic components manufacturing, chemical raw materials and chemical products manufacturing, non-metallic mineral products industry, retail, telecommunications and related equipment manufacturing.
The top five individual stocks with net inflows in the two markets today were: Chongqing Brewery, Road & Bridge Construction, Le Shi Wang, Huali Family, Jiujiujiu.
The top five individual stocks with net outflows in the two markets today were: Gongda Acoustic, SAIC Motor, Dongfeng Shares, Watchdata Technologies, Suning Appliances. (Hexun Stock)