CSI 300 dropped 1.01%.
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This week, the A-share market showed signs of weakness, with upward momentum stalling and overall signs of market fluctuation and adjustment. The SSE Index decreased slightly by 0.36%, down approximately 7.7% from its 52-week high.. The index’s trading volume was larger than the 50-day average, indicating that the market remains active but lacks sufficient upward momentum. The CSI 300 Index fell by 1.01% this week, with a drop of over 11% from its highest point in the past year. In contrast, the ChiNext Index performed weakly, falling 1.4% this week and continuing to distance itself from its yearly high. On the international market front, the Nasdaq Composite rose by 0.22%, showing relatively strong performance and hitting a new yearly high. In comparison, the S&P 500 Index declined by 0.64%. The Hang Seng Index rose by 0.53%, still up 34.99% from its yearly low, showing some support.
Regarding economic data, the U.S. November unadjusted CPI year-on-year remained at 2.7%, in line with market expectations, indicating stable inflationary pressures in the U.S. The U.S. EIA crude oil inventories showed a slight decline, further raising market attention toward energy stocks. The European Central Bank in the Eurozone also lowered its deposit rate to 3% this week, signaling its support for economic recovery.
Domestically, the Central Political Bureau’s meeting signaled an enhancement of counter-cyclical measures, which is expected to bring more policy support to the market. In particular, the large-scale mergers and acquisitions policy released by Shanghai is likely to boost activity in relevant sectors. Additionally, the expansion of the individual pension system will inject new growth momentum into the capital markets, likely further driving long-term capital inflows into the stock market.
In terms of industry performance, sectors with notable growth this week included Retail-Super/Mini Mkts (G5411IG.CN), which rose by 18.01%, Food-Grain & Related(G2041IG.CN), which rose by 15.16%, and Comml Svcs-Advertising(G7310IG.CN), which rose by 12.98%. Among these, the retail sector was the strongest performer, benefiting from a recovery in consumer demand and policy support.
The top 33 stocks this week had an average increase of 4.30%, with 18 stocks rising and 15 stocks falling. Among individual stocks, Espressif Sys Shanghai (688018)saw a significant increase, with its share price rising by 50.2%. The company specializes in IoT Wi-Fi MCU communication chips and has strong international market competitiveness, with significant advantages in building its technological ecosystem. Luxin Technology has an O’Neil Score of 72, and RS Rating of 98, indicating strong market performance. Additionally, its EPS Rating is 94, showing excellent earnings growth, and its Acc/Dis Rating is 82, further confirming the market’s confidence in its future growth.
Overall, despite the strong performance of certain sectors and stocks, the A-share market remains in a state of resistance to upward momentum. Investors need to remain cautious, as there may be limited opportunities for substantial upward movement in the short term due to the current market instability.
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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 December 13, 2024