Shenzhen Component Index closes up 1.13%, lithium battery concept continues to strengthen

China News Network, March 27 - On the 27th, the three major A-share indices opened lower but rose, with the Shenzhen Component Index leading the gains. By the close, the Shanghai Composite Index rose 0.63%, closing at 3913.72 points; the Shenzhen Component Index rose 1.13%, closing at 13760.37 points; and the ChiNext Index rose 0.71%, closing at 3295.88 points.

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From the market perspective, sectors such as lithium, energy metals, and medical research outsourcing led the gains in the two markets; sectors like rural commercial banks, new energy generation, and inverters experienced significant declines.

The lithium battery concept continued to strengthen, with over 20 stocks such as Ganfeng Lithium and Yongxing Material hitting the daily limit. The pharmaceutical sector collectively showed strength, with stocks like Shutaishen and Xinlitai also hitting the daily limit. The chemical sector strengthened again, with Chitianhua and Baichuan Co. hitting the daily limit. The green power concept was repeatedly active, with stocks like YN Energy and Jinkong Power hitting the daily limit. The coal sector weakened, with Liaoning Energy hitting the daily limit downward.

By the close, the rise and fall ratio of all traded stocks in the Shanghai and Shenzhen markets was 4337:1073, with 93 stocks hitting the daily limit upward and 5 stocks hitting the daily limit downward.

In terms of individual stocks, some of the stocks that hit the daily limit today include: YN Energy (9.97%), Shuhua Sports (10.00%), Aorui De (9.95%), Ganfeng Lithium (10.00%), and Ningbo Energy (10.03%). Some stocks that hit the daily limit downward include: Liaoning Energy (-9.93%), Keli Ke (-10.02%).

The top five stocks by turnover rate are: Puang Medical, Mingpu Optoelectronics, Haisen Pharmaceuticals, Aorui De, and Hongming Electronics, with turnover rates of 65.527%, 48.625%, 44.497%, 43.052%, and 39.849%, respectively.

Dongxing Securities believes that the direct impact on the A-share market is due to rising energy prices. As one of the world’s major oil importers, high oil prices bring cost pressures, which is a direct trigger. Additionally, rising energy prices heighten concerns about a global economic recession, affecting the overall environment for China’s manufacturing exports. Furthermore, rising energy prices lead to changes in the Federal Reserve’s monetary policy pace, significantly delaying market expectations for interest rate cuts, and a stronger dollar exerts pressure on global capital markets.

Dongxing Securities analyzes that a degree of easing in conflict is conducive to a rebound in market risk appetite, significantly reducing the short-term disruptive effects of oil prices. The market returns to fundamental logic, and growth stocks that have previously adjusted significantly are expected to stop falling and rebound. The market has retreated from the previous 4000-4200 point range to the 3800-4000 range, likely forming a new market bottom oscillation center near 3900.

Zhongyuan Securities expects that the Shanghai Composite Index is likely to maintain a range-bound pattern, suggesting that investors closely monitor macroeconomic data, changes in overseas liquidity, and policy trends. In the short term, it is recommended to pay attention to investment opportunities in industries such as batteries, energy metals, chemical products, and robotics. (China News Network APP)

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