Chinese markets showed mixed performance today, with the three major indices ending in divergent territory. The Shanghai Composite Index rallied in late trading, reclaiming the 3900-point mark, driven by coal stocks, while the Shenzhen Component Index and the ChiNext Index experienced volatile declines, though losses narrowed by the close. Market analysts noted that after two consecutive days of rapid rebound, market divergence has begun to intensify, with significantly expanded intraday volatility.
As of the close on August 6, the Shanghai Composite Index rose 0.57%, the Shenzhen Component Index fell 0.24%, and the ChiNext Index declined 0.55%. A total of 2,789 stocks advanced, with 83 hitting the daily limit, while 2,590 stocks declined. The coal sector collectively strengthened, with stocks like Haohua Energy, Lu'an Environmental Energy, and Huaibei Mining hitting their daily limits. The electronic specialty gas concept surged, with Shudao Equipment, Yingde Gases, and Befar Group also hitting daily limits. On the downside, sectors such as batteries, education, medical services, and passenger cars led the declines. Contemporary Amperex Technology Co Ltd once plunged 5%.
In the memory chip sector, which has drawn significant market attention, overseas memory chip giants experienced a collective slump. Kioxia and SK Hynix plunged over 10%, while Samsung Electronics fell more than 6%. In pre-market trading in the US, SanDisk plunged about 8%, and Western Digital dropped 11%. On the news front, Western Digital and SanDisk simultaneously released their latest financial reports. SanDisk forecasted its current quarter profit guidance midpoint, while above the average estimate from the London Stock Exchange Group, fell short of forecasts from other data providers. SanDisk reported fourth fiscal quarter revenue of $8.97 billion, exceeding market expectations of $8.39 billion, and adjusted earnings per share of $39.25, also surpassing the market consensus of $34.45. The company expects first fiscal quarter revenue between $10.3 billion and $10.8 billion, with a midpoint above the analyst average of $10.47 billion compiled by the London Stock Exchange Group. SanDisk's board also approved a new $14 billion stock buyback program, bringing the total remaining authorization to $15.5 billion.
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