Huatai Securities: External conflicts and holiday effects may suppress risk appetite; focus on subsequent shift towards profit anchors

On March 29, People’s Financial News reported that Huatai Securities’ strategy research stated that this week, the geopolitical situation is intertwined with global liquidity tightening expectations, leading to extremely cautious trading sentiment in the market. Against the backdrop of changing macro pricing logic, micro-gaming in the market has intensified accordingly, with funds beginning to seek certainty amid energy shocks (such as lithium batteries, etc.). However, it should be noted that in a market with declining volumes, the sustainability of a single sector’s rise is under test, thus the core focus of the gaming direction lies in the “cost pass-through” capability within the industrial chain. Looking ahead, the current weak balance is about to face multiple testing windows. In the outlook, there are geopolitical variables externally and “pre-holiday effects” suppressing internally, which puts pressure on trading activity. However, from a cross-month perspective, as April approaches, marking the intensive disclosure period for A-share financial reports, the market’s pricing anchor is expected to gradually penetrate emotional disturbances and return to fundamental verification. In terms of positioning, moderately focus on coal, power chain, and chemical raw materials that may benefit from high oil prices and have cost pass-through capabilities, while using low-end essential consumer goods as a base.