On the last trading day of April, A-shares failed to extend their rally, but still held the 3,100-point mark and maintained a volatile upward trend during the month. So, what are the market opportunities in May?
On April 29, A-shares rose sharply, and shareholders cheered for "fake pre-welfare". However, on April 30, A-shares failed to continue the grand occasion, and the overall situation was green, with the three major indexes falling and more than 3,000 stocks falling.
In retrospect, A-shares fluctuated upward in April, and the value of small caps prevailed. Looking ahead to May, some institutions point out that with the end of the earnings disclosure period and the recovery of risk appetite, the market may start to look for a more resilient direction again. The style of the large and small caps will depend on the strength of foreign capital and financing inflows.
The turnover exceeded one trillion yuan in a row
On April 30, the Shanghai Composite Index fell 0.26% to 3,104.82 points, and the ChiNext Index closed down 1.55% at 1,858.39 points. A total of 1,927 stocks closed up and 76 closed up, while 3,248 stocks closed down and 40 fell down.
In terms of turnover, A-shares exceeded one trillion yuan for three consecutive days, with a turnover of more than 1.2 trillion yuan on April 29 and a drop to 1 trillion yuan on April 30. Northbound funds, known as "smart money", had a net inflow of more than 33 billion yuan into A-shares in the first two days, and a net outflow of 8.6 billion yuan on April 30.
In terms of sector performance, only 8 of the 31 sectors were red, household appliances led the rise with a 2.5% increase, and cyclical sectors such as coal, banking, and petroleum and petrochemical protected the disk.
However, building decoration, power equipment, social services, real estate, steel, non-bank finance and other sectors all fell nearly 2%.
Will the "Red May" come
After the A-share market bottomed out and rebounded in February, the market was once worried about a downward trend, but fortunately, the performance has been relatively stable, and the overall net inflow of northbound funds in April was 6.02 billion yuan. In the 20 trading days since April, the Shanghai Composite Index has closed up 2.09%.
Compared with the Shanghai Index, the ChiNext Index is more volatile. Fortunately, the sharp rise in the first two days supported the growth of 2.21% during the entire April.
Recently, household appliances, banks, chemicals, automobiles and other sectors have performed well.
"After the release of the new 'National Nine Articles' in the capital market, it is expected to improve the micro liquidity of A-shares in the medium and long term. China Merchants Securities Research Report pointed out that in May, with the end of the performance disclosure period, risk appetite repaired, the market or re-began to look for a more flexible direction, based on the theme of industrial trends is expected to be re-active, the previously suppressed growth style may return to dominance.
China Merchants Securities believes that under the improvement of economic expectations, the return of foreign capital is expected to improve the supply and demand structure of A-share funds, and the rebound in the concentration of public fund holdings may be conducive to the performance of the broader market. However, considering the possible return of financing funds during the performance vacuum period, the large- and small-cap style will depend on the inflow of foreign capital and financing funds, and if the latter becomes the main increment, it may also drive the recovery of the small-cap style.
According to the analysis of Great Wall Securities, there are structural bright spots in the domestic economy, but the momentum is still weak. After the Politburo meeting in April, the expectation of stable growth policy has been further improved, and fiscal policy may be further strengthened in the second quarter of this year. At the same time, the real estate policies of some key cities have further released positive signals recently, and more policy marginal relaxation on the real estate sales side is worth looking forward to. The agency pointed out that the performance of A-shares has accelerated, and the stock market may continue to fluctuate as a whole in May, but the impact of the policy side is more positive, coupled with the obvious recovery of the net inflow of northbound funds, you can continue to pay attention to the upstream resource sector, the large market capitalization dividend sector and the leading technology manufacturing companies, and it is recommended to pay attention to the opportunities of individual stocks with better performance.