【Institutional Strategy】A-share market overall remains in a volatile consolidation pattern

Hualong Securities believes that on Thursday, the A-share market bottomed out and rebounded, with the three major indices closing slightly lower. In terms of sectors, green energy, chemicals, and coal performed strongly, while gas turbines and military industries continued to adjust, showing clear structural differentiation. Technically, the overall A-share market remains in a pattern of oscillating recovery, and further upward movement will still require volume support.

Caixin Securities states that on Thursday, the three major A-share indices fluctuated at low levels. The market showed good performance in dividend-related sectors, with green electricity leading the gains, and coal and chemical sectors remaining active, while the Sci-Tech Innovation sector saw slight adjustments. As the Middle East situation’s disturbance diminishes and China’s two sessions conclude, the market may gradually return to its normal rhythm. The overall trend of the market should not be overestimated for two main reasons: one, the energy supply crisis caused by Middle East tensions remains uncertain, and concerns about global inflation rising have increased; two, A-shares will soon enter a period of intensive earnings disclosures, raising attention to risks of underperforming expectations. Both factors will suppress market risk appetite, leading to continued wide-range fluctuations. In the short term, funds may focus more on sectors with improving prosperity, and investors can continue to participate in structural opportunities on dips with reasonable position control. In the medium term, the impact of overseas macro events remains, and a trend-based rally is still expected to wait until the end of April. The market is likely to fluctuate widely, with increased volatility. It is recommended to reasonably control positions and wait for signs of a market turning point. It should be emphasized that in recent years, regulators have strengthened strategic reserves and stabilized market mechanisms to maintain market stability. The volatility of the A-share market has significantly decreased, and it is expected that A-shares will remain resilient compared to foreign markets, so excessive worry is unwarranted.

BOHAI Securities believes that during the Two Sessions, the market was generally cautious. However, even if external markets fluctuate more due to Middle East conditions and oil prices, the A-share market has still demonstrated good resilience, reflecting the stability of the capital market. In the short term, the market may continue to oscillate, but in the medium term, it is more likely to return to a pattern of oscillating upward. As the first-quarter earnings disclosure period approaches, market focus may shift further toward performance, attempting to drive structural growth.