A-share Opening Express | The three major indices had mixed ups and downs, and the precious metals sector led the way

Opening data

The Zhitong Finance App learned that on November 4, the Shanghai Index opened 0.08% lower to 3605.39 points, the Shenzhen Index opened 0.17% higher to 10,895.80 points, the GEM index opened 0.33% higher to 2399.46 points, and the Science and Innovation 50 opened 0.09% higher to 1152.34 points.

As of 9:31, a total of 2,063 companies in the Shanghai and Shenzhen markets had risen, 3166 were down, and 349 were flat.

The increase was highest: precious metals, cinema lines, publishing, decoration, games, small metals, etc.; the decline was highest: large state-owned banks, etc.

Market conditions

The Shanghai Index opened 0.08% lower, while the Shenzhen Index, GEM Index, and Science Innovation 50 opened 0.17%, 0.33%, and 0.09% higher, respectively. After opening, the Shanghai index fell to 3599.50 points and then rebounded and turned red. The GEM index fell slightly from 2399.46 points, and the increase narrowed to 0.05%. As of 9:31, the Shanghai Index rose 0.02% to 3608.79 points, the Shenzhen Index rose 0.18% to 10896.39 points, the GEM index rose 0.05% to 2392.87 points, and Science Innovation 50 rose 0.02% to 1151.46 points.

In terms of the sector, precious metals, film and television lines, publishing, decoration, games, and small metals had the highest gains, while germanium gallium concepts and wine concepts were active; large state-owned banks had the highest declines, banks and insurance weakened slightly, and general equipment was basically flat. The precious metals sector had a cumulative decline of 5.56% in the past 5 days and a 15.17% decline in the past 20 days. The strength of the opening was closer to an overrun rebound; overnight, COMEX gold futures fell 0.74%, silver futures fell 2.12%, and the external market did not provide direction. The Shanghai and Shenzhen markets rose and stopped 14 and 5. The number of rising companies accounted for 37%. The index rose slightly, while individual stocks fell more and less.

Overnight quick facts

US stock differentiation: The Dow fell 0.38% to 51786.72 points, the NASDAQ rose 0.83% to 25372.01 points, the Philadelphia Semiconductor Index rose 2.63% to 10,600.40 points, and storage and chip stocks rebounded. The 10-year US Treasury yield continued to rise by more than 5 basis points to 4.966%, and the WTI crude oil contract fell 0.38% to $96.09 in December. The US held a midterm election vote on the 3rd.

Stabilizing the market: The central bank launched the third securities, fund, and insurance company exchange and facilitation operation on the 3rd, with an amount of 100 billion yuan. 31 securities and fund companies participated in the bid and won the bid rate of 10 basis points; the central bank, together with the General Administration of Financial Supervisory Authority and the Securities Regulatory Commission, made it clear on the 2nd that stock repurchases to increase refinancing were changed from phased arrangements to long-term institutional arrangements, and interest rates were reduced from 1.25% to 1%. The Securities Regulatory Commission answered questions from reporters on the evening of the 2nd and stated that it plans to add “breakdowns” in stock prices to one of the situations where protected disk repurchases can be carried out.

Price increase of electronic cloth: In November 7628, the price of thick cloth was 14.6 to 14.65 yuan/meter, up 1.5 yuan from month to month; E225 yarn reported 71,500 yuan/ton, up 10,500 to 12,500 yuan from month to month. Manufacturers claim that production is currently at full capacity, the boom in electronic deployment may continue until the end of next year, and the cost pressure will be transmitted downstream along copper-clad plates and PCBs.

Trend analysis

On the previous trading day, the Shanghai index fell 0.82% to 3608.10 points, and the GEM index fell 2.73% to 2,400 points. Transactions shrunk to 1.7 trillion yuan. Computing power and hardware led the decline, and capital turned to low levels such as food and beverage, agriculture, forestry, animal husbandry and fishing. The opening of the market on the 4th had mixed ups and downs, and precious metals and movie theaters strengthened.

Overnight, the NASDAQ rose 0.83%, and the Philadelphia Semiconductor Index rose 2.63%, or eased the downward pressure on the A-share computing power chain; however, the 10-year US Treasury yield continued to rise, and the restrictions on high valuation growth remained unresolved. Market stabilization tools have moved to normalized supply.

The main line of brokers' strategy in November was fixed at a low level: Li Lifeng of Huaxi Securities believes that the market has shown excessive adjustment and is in the stage of bottoming out, and that a rebound can be expected to bottom out. He suggests using value stocks as bottom positions and batches to depreciate; Song Jin from Nomura Oriental International believes that continued inflow of ETF funds is expected to ease market pressure, but suggests maintaining a high level of defense until volatility decreases. The overall allocation approach has shifted from defensive to both offense and defense, and whether the market can form a sustained rebound still depends on the entry of incremental capital into the market.