Tech Sector Most Favored Next Week!

Deep News12-14 20:40

From December 8 to 12, the A-share market showed mixed performance, with trading volume remaining above 1.7 trillion yuan. In terms of indices, the Shanghai Composite Index fell 0.34% for the week, closing at 3,889.35 points; the Shenzhen Component Index rose 0.84%, while the ChiNext Index gained 2.74%. The Beijing Stock Exchange 50 Index climbed 2.79%, making it the top performer among major A-share indices this week.

Among Shenwan's primary sectors, the communications sector led gains with a 6.27% increase, followed by defense and electronics, which rose 2.8% and 2.63%, respectively. On the downside, coal and petrochemical sectors dropped over 3%, while steel, real estate, textiles, and basic chemicals all declined more than 2%.

In terms of capital flows, A-shares saw a net outflow of approximately 120.5 billion yuan in main funds this week. Electronics, computers, and communications sectors recorded net outflows exceeding 10 billion yuan each, totaling 17.97 billion, 16.1 billion, and 16.07 billion yuan, respectively. In contrast, banking and steel sectors saw net inflows of over 100 million yuan, at 1.55 billion and 460 million yuan, respectively.

**Strong Earnings Effect This Week** A survey released on December 13 revealed positive sentiment among investors. Regarding position changes, 22% of respondents increased their holdings, 20% reduced positions, and 5% liquidated entirely, while 54% maintained their positions.

Overall, positions trended downward this week, with "full margin positions" and "full positions" declining by 2 and 4 percentage points to 6% and 32%, respectively. Meanwhile, "50%-100% positions" and "below 50% positions" rose by 1 and 4 percentage points to 38% and 20%, respectively.

More than half of respondents reported profits: 45% saw gains under 10%, while 7% earned over 10%. Conversely, 36% faced losses under 10%, and 13% experienced declines exceeding 10%.

**Half Expect Sideways Movement Next Week** With the Shanghai Composite closing at 3,889.35 points, 50% of respondents predict a sideways trend below 4,000 points next week. Meanwhile, 31% anticipate a rally above 4,000 points, split between sustained growth (17%) and a pullback (14%).

Investment strategies varied: 14% plan aggressive alpha-seeking allocations, 23% aim for stable beta returns, and 22% consider profit-taking or止损 opportunities.

Long-term optimism persists, with 45% targeting 4,000 points for the Shanghai Composite and 37% eyeing 5,000 points. Risk perception remains moderate, as 59% view the market as medium-risk.

**Tech Sector Dominates Sentiment** At 55%, technology retains the highest favorability for next week. Renewable energy's outlook rose 4 percentage points to 8%, while big finance dipped 4 points to 4%.

Policymakers recently prioritized innovation-driven growth at the Central Economic Work Conference, highlighting AI integration and industrial upgrades. Galaxy Securities notes that "AI+" has been emphasized consecutively, signaling its strategic role in transforming tech into tangible industrial competitiveness, with future policies likely focusing on economic metrics like value-added and market share.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment