CSI300 dropped 1.68%
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This week, the CSI 300 index fell by 1.68%, with volume slightly higher than last week and still above the 50-day average, indicating the market remains in an upward trend. Investors can look for high-quality stocks near buy points from the “Idea List” or “Screener,” particularly those that performed well in the third-quarter earnings reports. It is advisable to focus on stocks with strong technical and fundamental indicators to maintain stability amid market fluctuations.
The October PMI data shows a trend of marginal improvement, with the manufacturing PMI reaching 50.1, indicating a slight expansion in manufacturing activity. Although policies mainly support medium and large enterprises and the midstream of the industrial chain, the impact on the demand side still needs to be observed. Achieving the annual GDP growth target of 5% remains challenging.
Regarding global central bank policies, the Federal Reserve is expected to implement several rate cuts in 2024, potentially lowering rates to 4.25% by the end of the year. Investors should closely monitor the Fed’s interest rate decision meeting next Friday. The Bank of Japan maintained its rate at 0.25%, while the Swiss National Bank became the first G10 country to announce a rate cut.
In October, the U.S. Dollar Index surged over 3%, while the RMB/USD spot exchange rate fell by 1.43%. The upcoming U.S. presidential election is expected to have a lasting impact on the market.
In terms of individual stock performance, the top 33 stocks on the O’Neil list averaged a decline of 1.05% this week, with Doushen Beijing Education & Tech (300010) standing out with a price increase of 130.63%. The company focuses on internet education, information security, and domestic alternative software and hardware products, operating within the software and information technology services sector. Its relative strength and capital inflow ratings are 99 and A+, respectively, but the O’Neil rating is only 55, indicating some risk.
The top three performing O’Neil sectors this week were: Retail – Consumer Elec (G1094IG.CN), which rose by 18.80%; Utility – Diversified (G4942IG.CN), which increased by 13.58%; and Computer – Integrated Syst (G1004IG.CN), which gained 11.97%. The strong performance of these sectors may provide new investment opportunities for investors, especially in the context of overall market volatility.
Investors should remain cautious in the current market environment, paying attention to policy trends and industry developments while seeking potential investment opportunities.
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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 November 1, 2024