The SSE 50 Index hit a new low this year. Is there an opportunity for buying at the bottom?
Traditional industries represented by banks and real estate performed sluggishly during the year. The decline in these related stocks during the year dragged down the Shanghai 50 Index, while mid-cap stocks represented by new energy and new energy vehicles rose sharply, driving the ChiNext Index to surpass the Shanghai Stock Exchange Index. It is expected that the Shanghai Stock Exchange 50 Index will remain weak in the second half of the year, and small and medium-cap stocks with growth attributes will become the main targets of investment.
On July 14, A shares were in a downturn, and the decline in late trading hours expanded. Sector stocks generally fell. Among them, the automobile, non-ferrous, and military sectors were the leading decliners, the new energy sector fell sharply, and foreign investment was also selling in large quantities.
As of the close, the Shanghai Composite 50 Index fell 52.36 points, or 1.54%, a record low for the year. How will the large-cap stocks of the Shanghai stock market that were invested by the group at the beginning of the year develop?
The banking and real estate industries drag down the SSE 50.
The Shanghai Stock Exchange 50 Index began to fluctuate and fall after February 18 this year, and the 50 constituent stocks had a distinct ups and downs during the year. On July 14, the Shanghai Stock Exchange 50 Index hit a new low in the year, reaching 3328.88 points, and finally closed down 1.54% to 3,339.38 points.
The overall stock market is sluggish, and individual stocks have differentiated performance. During the year, 603259 and other medical service stocks, 603501 and other semiconductor stocks, and 600809 and other liquor stocks soared.
Financial stocks such as 600918 and 601318, real estate stocks such as 600048, and chemical pharmaceutical stocks such as 600276 fell sharply during the year. Food stocks such as 600887 and 603288 fell more than 18% during the year.
Since mid-February, why has the SSE 50 Index continued to slump?
Analysts believe that first, institutions, especially foreign investment, have changed their preferences for consumer stocks, from large-cap stocks represented by food and beverage to mid-cap stocks represented by new energy and new energy vehicles. Second, the continued decline in nominal interest rates after June has increased risk appetite, making small and medium-cap stocks with growth attributes more popular in the market. Third, since the Fed's monetary policy tightened slightly in June, the RMB has depreciated against the US dollar, and the inflow of the North bound to A-shares has slowed, resulting in a decline in the allocation demand for large-cap stocks.
The high-weight stocks in the Shanghai 50 Index are represented by banks and real estate. However, in this year's market, banks and real estate did not perform well in the rest of the time, except for a pulse-like rise. The performance of the entire procyclical sector was not good, which caused the SSE 50 Index to slump.
The economic data dropped from the high, coupled with the tightening of real estate policies, making the profit expectations of traditional industries in the SSE 50 more pessimistic, and the unexpected RRR cut seems to confirm this. Before the economic data reaches a low level, it is difficult for the traditional industries in the SSE 50 to become the dominant style of the market.