A-share midday review | Shanghai Composite Index rises 0.15% at midday, Industrial and Commercial Bank and other bank stocks reach new highs, port shipping, military industry and other sectors strengthen

On June 23, the A-shares market opened with fluctuations, with the three major indexes showing mixed movements. The total trading volume in the morning was 670.6 billion, a decrease of 4.92 billion compared to the previous trading day. By midday closing, the Shanghai Composite Index rose by 0.15%, the Shenzhen Component Index fell by 0.16%, and the Growth Enterprise Index fell by 0.33%. In terms of news, the geopolitical situation continued to escalate, with the United States bombing Iranian nuclear facilities and the Iranian parliament approving the closure of the Strait of Hormuz, causing crude oil prices to surge nearly 6%. Orient believes that the market is clearly being affected by external geopolitical disturbances, but the decline is limited, indicating strong support from investors. It is expected that the market will continue to maintain a similar situation in the short term, with a possible shift towards technology and growth stocks. In terms of market trends, the hot sectors focused on concepts related to the Middle East situation. Port and shipping stocks saw a resurgence, with companies like Ningbo Marine and Jiangsu Lianyungang Port hitting the daily limit up. The defense industry sector performed well, with Anhui Greatwall Military Industry hitting 4 consecutive limit ups. Oil and gas stocks continued to rise, leading to a broad rally in the chemical sector. Environmental protection concepts related to nuclear pollution also saw gains. Looking ahead, Guotai Junan believes that after the short-term risks are released, the core contradiction in the Chinese stock market remains internal rather than external. They maintain a more optimistic view on the market outlook. In terms of popular sectors, the port and shipping sector saw gains, the chemical sector surged, and the cross-border payment concept stocks rose. Various institutional viewpoints were also shared regarding the market outlook and investment strategies.