A-share market closing review | See-saw effect obvious, ChiNext 50 rose nearly 4%! Disturbance events have successively landed, how will the market interpret in the future?

On June 18th, the trends of the three major indices differentiated, with the Shanghai Composite Index showing some weakness, while the Growth Enterprise Index and the Science and Technology Innovation Index both hitting historic highs. By the close of trading, the Shanghai Composite Index fell by 0.43%, the Shenzhen Component Index rose by 0.94%, and the Growth Enterprise Index rose by 2.05%. In addition, the Science and Technology Innovation 50 Index rose by 3.84%. Most individual stocks in the market fell more than they rose, with over 3300 stocks declining. The total trading volume in Shanghai, Shenzhen, and the two cities for the whole day was 3.31 trillion yuan, an increase of 218.3 billion yuan from the previous day. The market showed a seesaw effect, with the focus still on AI themes in the A-share market, particularly in sectors like communications and electronics. Traditional industries suffered losses, with non-bank financial institutions, utilities, and petroleum sectors all falling by more than 2%, and bank stocks also among the top losers. In addition, there are several points of concern in the market: 1. The four highest-priced stocks in A-shares Semight Instruments, Yuanjie Semiconductor Technology, Cambricon, Zhongji Innolight all saw significant morning gains, with all reaching historic highs in their stock prices. Cambricon rose by 13.31%. The first-quarter performance of these four stocks was outstanding. 2. Some recent hot stocks have experienced corrections today, such as Shandong Fiberglass Group Corp., Zhejiang Taitan, Yantai North Andre Juice, and Kewell Technology, all of which saw significant declines. 3. The financial sector saw significant declines, with insurance stocks leading the way, including New China Life Insurance, China Pacific Insurance, The People's Insurance, and China Life Insurance. Banking, securities, and futures sectors also saw declines, with stocks of the five major state-owned banks all falling in prices. With events like the World Cup opening, SpaceX going public, the remote signing of a memorandum of understanding between the US and Iran, and the Federal Reserve's interest rate meeting, the market had been concerned about a series of disruptive events coming into play. How will the market play out in the future? In fact, the market has already given an answer in the past few days focusing on performance. Analysts say that starting in mid to late June, the market entered a window of verification for mid-year performance reports, with a focus on stocks with strong performance expectations. In particular, there is high expectation for mid-year performance in sectors like storage chips, optical modules, and optical fibers. Popular sectors: 1. Computing power chip concept continues to strengthen, with Cambricon rising by over 14%. 2. Optical module concept shows strong gains, with companies like Accelink Technologies hitting new highs. 3. Rare earth permanent magnet concept strengthens, with companies like Shenghe Resources Holding and China Rare Earth Nonferrous Metals both hitting limit up. 4. Siasun Robot & Automation concept shows upward movement, with companies like Jintuo Technology and Tianrun Industry Technology hitting limit up. Institutional views: - Orient: Technology growth continues to be the core theme, with both markets continuing to rise in a volatile manner. - Caixin Securities: The market is stabilizing and could see some fluctuation to clear out trapped buyers above. - Tianfu Securities: Extreme differentiation in the market, with crowded trades and pressure from previous highs being key considerations in decision-making.