Hexun Investment Advisor Chen Xiujuan: A-shares fermenting 3 pieces of news, Wednesday market trend analysis!

Recently, three major news items have emerged in the A-share market, significantly impacting short-term trends and sector movements. Investors should pay close attention.

First, market sentiment is once again under pressure. On the individual stock level, a company called Farsun only achieved four consecutive limit-ups but announced that if the stock price rises further, it may apply for trading suspension and investigation with the Shenzhen Stock Exchange. This statement came amid a general rebound in overseas markets, while the A-share market weakened alone, with over 4,500 stocks closing in the red, adding further stress to an already sluggish market sentiment. If negative feedback effects expand, high-priced small-cap stocks lacking performance support and relying solely on concept hype should be avoided; blind participation is not recommended. Meanwhile, regulators are guiding the market back to performance fundamentals, and with the upcoming intensive April financial report disclosures, earnings will become a key factor in validating stock prices. Some industry leaders that have already announced positive earnings forecasts have received positive market feedback. Those in high-quality sectors, with relatively low positions or already fully adjusted, are expected to gradually attract capital.

Second, the energy market is stirring again. For the first time, oil and gas production in the Persian Gulf was directly attacked, with a major UAE natural gas field suspending operations due to a drone attack. As a global energy hub, this explosion has triggered serious concerns over supply disruptions, causing international oil prices to surge sharply in Tuesday afternoon, and the A-share oil sector to rise against the trend. However, this sector has been repeatedly hyped before, and despite recent events, it remains in a phase of continuous adjustment. It is advisable to wait for a trend stabilization before deploying. On the other hand, sustained high oil prices will push up chemical product prices. Coupled with the fact that March and April are traditionally windows for chemical sector speculation, this sector may attract capital back after a period of adjustment. Additionally, turmoil in traditional energy sources further reinforces the substitution logic of new energy, with nuclear power, energy storage, and hydrogen energy sectors worth monitoring for rotation opportunities.

Third, the global storage chip supply chain faces new challenges. Samsung’s union has threatened to initiate a large-scale strike in May, which, if realized, would directly impact Samsung’s production lines. Restarting after a shutdown could take up to two months. As a global leader in storage chips, any supply disruption from Samsung would exacerbate the worldwide shortage, further boosting prices. For the A-share market, the storage chip sector rebounded on Monday and corrected on Tuesday, but leading stocks did not show obvious negative feedback. Given increasing demand and tight supply, this sector still has long-term value potential and is worth paying attention to on dips.

Looking at the overall market trend, Tuesday’s trading continued with reduced volume and no clear signs of stabilization. Considering the ongoing complex and volatile external environment, uncertainties remain high, which will continue to suppress bullish confidence and increase market fluctuations. Even if technical rebounds occur, their sustainability should be approached with caution. Before the market stabilizes, it is recommended to maintain cautious positions, focusing on high-low trading strategies. Sector rotation opportunities can still be found in new energy, chemicals, CPO, and dual-electric coordination sectors. Trading strategies should focus on low-buying and riding the wave for quick gains, avoiding chasing highs.

(Edited by: Zhang Yan)

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