A-share midday review | Shanghai Stock Exchange fell 0.71% in half a day, more than 4200 stocks floated green. Precious metals and innovative pharmaceutical sectors lead the gains.

On March 28, the market opened weak and fluctuated, with over 4200 stocks trading in the red. By midday, the Shanghai Composite Index fell by 0.71%, the Shenzhen Component Index fell by 0.53%, and the ChiNext Index fell by 0.58%. EB Securities pointed out that the market sentiment has cooled recently, with trading volume remaining low. Internal funds are mainly engaged in positional games, leading to the differentiation and rotation of hotspots. In terms of the market, the hotspots are concentrated in the pharmaceutical and gold sectors, with a strong desire for risk aversion in funds. Large financial stocks supported the market, with SPIC Industry-Finance Holdings hitting the daily limit at one point. Concept stocks of innovative drugs continued to rise, with Xinjiang Bai Hua Cun Pharma Tech hitting the daily limit. Gold stocks strengthened, with Western Region Gold leading the way. In addition, sectors such as photovoltaic, semiconductors, and computing power showed strong performances before falling back. On the downside, chemical stocks collectively declined, with Nantong Jiangtian Chemical leading the decline. The deep-sea technology concept continued to adjust, with Shanghai SK Petroleum & Chemical Equipment Corporation hitting the daily limit. Industrial metal sectors trended lower, with significant declines in sectors such as consumer goods. Looking ahead, EB Securities pointed out that the market sentiment continues to stabilize and recover, with the potential for gradual rebounds ahead. However, considering the low trading volume, the market may primarily see structural market trends. Hot Sectors 1. Strong performance in the innovative pharmaceutical sector The innovative pharmaceutical sector continued to show strength, with Xinjiang Bai Hua Cun Pharma Tech, Zhuhai Rundu Pharmaceutical, and others hitting the daily limit. R&G PharmaStudies, Shouyao Holdings, Beijing Hotgen Biotech Co., Ltd, ApicHope Pharmaceutical Group, and Haichuang Pharmaceutical also followed suit. 2. Strength in the gold sector Gold stocks showed strength, with Western Region Gold rising by over 6%, and Beijing Xiaocheng Technology Stock, Sichuan Gold, Shanjin International Gold, Leysen Jewellery Inc., Shandong Gold Mining, and others following suit. Institutional Views 1. Zhongtai: How will the market trend in April? Zhongtai pointed out that the core contradiction in the market after the two sessions is whether the switch between highs and lows has been fully anticipated by the market, and how sustainable the funds are. In the short term, as the speculation intensifies, the market may oscillate widely at high levels, with industries rotating faster before entering a correction phase. Therefore, the current investment strategy still recommends maintaining a strategy of switching between highs and lows, avoiding small and medium-sized technology stocks driven by high leverage and high valuations, and focusing on assets related to the expansion of European manufacturing, such as colored, military, and nuclear power assets, as well as defensive assets such as dividend stocks and bonds. 2. Zheshang: Market diffusion encounters resistance, do not be aggressive and wait for the right time Zheshang pointed out that as the weighted indexes did not continue their previous breakthrough momentum, the sector rotation from technology to finance and consumption did not materialize as expected, increasing the probability of market fluctuations. It is expected that the weighted indexes that have lagged in previous gains will likely enter into a range-bound consolidation, while growth indexes and technology sectors with larger gains may see greater fluctuations compared to weighted indexes. It is advisable for investors to remain cautious and not be aggressive, and wait for the market to stabilize before increasing their positions. In terms of sectors, it is recommended to continue following the principle of "high to low switching," switching to sectors such as large finance, large consumption, and dividends, which have relatively lagged gains, during the rebound process of growth indexes and technology sectors. 3. EB SECURITIES: Market sentiment continues to stabilize and recover, with potential for gradual rebounds EB SECURITIES pointed out that the market sentiment has cooled recently, with trading volume remaining low. Internal funds are mainly engaged in positional games, leading to the differentiation and rotation of hotspots. Looking ahead, the market sentiment continues to stabilize and recover, with the potential for gradual rebounds ahead. However, considering the low trading volume, the market may primarily see structural market trends. This article is sourced from "Tencent Self-selected Stocks". Editor: Wang Qiujia.