A-share market closing summary: The trading volume continued to be low, with the Shanghai Composite Index closing down by 0.67%. Stocks related to AI applications were active against the trend.

On March 28th, the A-shares experienced a volume adjustment, with continuous low trading volume and over 4300 stocks falling in the market. By the close, the Shanghai Composite Index fell by 0.67%, the Shenzhen Component Index fell by 0.57%, and the ChiNext Index fell by 0.79%. Regarding the strong performance of pharmaceutical stocks, according to a report by China Securities Journal, the reasons include new policy expectations related to optimizing drug collection, domestic innovative drug companies frequently announcing external licensing transactions, and several innovative drug companies exceeding performance expectations. In terms of the market, the major financial sector supported the market, with Anhui Xinli Finance hitting the limit up; pharmaceutical stocks strengthened against the trend, with innovative drugs leading the way and Zhuhai Rundu Pharmaceutical hitting the limit up; controllable nuclear fusion concepts rose, with Hefei Metalforming Intelligent Manufacturing hitting the limit up; gold stocks continued to rise, with Western Region Gold hitting the limit up; AI application concept stocks surged in the afternoon, with Beijing Baination Pictures hitting a 20% limit up. On the downside, the chemical sector collectively fell, with popular stock Guizhou Zhongyida hitting the limit down; deep-sea technology concepts continued to adjust, with Shanghai SK Petroleum & Chemical Equipment Corporation consecutive hitting the limit down; the industrial metals sector declined, with large consumer-focused companies leading the decline. Looking ahead, EB SECURITIES pointed out that the market sentiment is continuing to stabilize and recover, and is expected to gradually rebound next. However, considering the low trading volume, the market may be dominated by structural trends. Hot sectors: 1. The strong trend in the innovative drug sector continued. Innovative drug concepts continued to be strong, with Zhuhai Rundu Pharmaceutical hitting the limit up, and Xinjiang Bai Hua Cun Pharma Tech, R&G PharmaStudies, Shouyao Holdings, Beijing Hotgen Biotech Co., Ltd, and ApicHope Pharmaceutical Group following suit. Analysis: Guotai Junan's research report believes that the current trend in the innovative drug industry is positive and continuously improving. The negotiation for medical insurance in 2025 is expected to be earlier and the Category B Catalog is expected to be published within the year. The decline in the collective procurement of biosimilar drugs is expected to be moderate. Pay attention to recent academic conferences and be optimistic about leading innovative drug companies. 2. Rise in controllable nuclear fusion concepts. Controllable nuclear fusion concepts surged in the afternoon, with Hefei Metalforming Intelligent Manufacturing and Fujian Snowman Group hitting the limit up, and Guangdong Shunna Electric, Shanghai Zhongzhou Special Alloy Materials, and other stocks following suit. Analysis: According to CCTV News, on March 28th, it was reported that the new generation of artificial sun "Chinese Circulation III" achieved a breakthrough in both nuclear and electronic temperatures of over one hundred million degrees for the first time, with comprehensive parameters significantly improved. China's controllable nuclear fusion technology has made significant progress. 3. Strong performance in the gold sector. Gold stocks fluctuated and rose, with Western Region Gold hitting the limit up, and Sichuan Gold, Beijing Xiaocheng Technology Stock, Chifeng Jilong Gold Mining, Shanjin International Gold and others rising. Analysis: Shanghai gold futures contracts rose nearly 2% in intraday trading, hitting a new historic high. In addition, on March 28th, major gold jewelry brands in China successively raised prices, with the highest reported at 934 yuan/gram. Goldman Sachs raised its gold price forecast for the end of 2025 from $3100/ounce to $3300/ounce, with a revised forecast range of $3250-3520/ounce. Institutional Views: 1. Zhongtai: How will the market style evolve in April? Zhongtai pointed out that for the stock market, the core contradiction of the market after the two sessions is whether this round of high-low switching has been fully anticipated by the market, and how sustainable the funds are. In the case of intensified short-term speculation, the market may oscillate widely at high levels and enter a correction after the rotation of industries speeds up. Therefore, the current investment strategy still recommends maintaining the "high-low switching" approach, avoiding small and medium-sized technology stocks driven by high leverage and high valuations, focusing on assets in the defense sector such as non-ferrous metals, military industry, and nuclear power brought about by the expansion of European manufacturing, as well as defensive assets like dividend stocks and bonds. 2. Zheshang: Difficulties in market diffusion, do not be aggressive and wait for the right time. Zheshang pointed out that looking ahead, as the weight index did not continue its previous breakthrough momentum, the sector rotation from "technology to finance, consumption" did not appear as expected, and the probability of market volatility increased. We predict that the weight indices that have lagged in previous gains will likely enter a range-bound consolidation phase, while growth indices and technology sectors that have seen significant gains previously may show greater volatility than weight indices. It is recommended that investors remain cautious and not be aggressive, and wait for the market to stabilize before increasing positions. In terms of industries, it is recommended to continue to follow the "high switch low" principle, and during the rebound of growth indices and technology sectors, switch to previously lagging large financial, large consumer, and dividend stocks. 3. EB SECURITIES: Market sentiment continues to stabilize and recover, and is expected to gradually rebound. EB SECURITIES pointed out that market sentiment has cooled recently, with trading volume remaining low and on-exchange funds playing a major role, causing differentiation and rotation of hot sectors. Looking ahead, market sentiment is continuing to stabilize and recover, and is expected to gradually rebound next; however, considering the low trading volume, the market may be dominated by structural trends. This article is reproduced from "Tencent Self-selected Stocks".GMTEight editor: Li Fo.Hello, how are you?