A-share morning market update: A-share opens low and rises high, Shanghai index turns red first! Gold stocks open strong, defense stocks surge.

On March 5th, the three major A-share indexes opened collectively lower in the morning but then fluctuated and rebounded. The Shanghai Composite Index turned red first, and as of the time of writing, the Shanghai Composite Index rose by 0.15%, the Shenzhen Component Index fell by 0.31%, and the ChiNext Index fell by 0.08%. On the market, gold stocks opened strong, with Chenzhou City Jingui Silver Industry hitting the daily limit up, and Shandong Gold Mining, Chifeng Jilong Gold Mining, and Sichuan Rongda Gold all rising. AI mobile phone concept stocks were active, with Sichuan Furong Technology hitting the daily limit up for the fourth consecutive day, Daoming Optics&Chemical hitting the daily limit up, and ArcherMind Technology(Nanjing)Co., Guangdong Suqun New Material following the rise. Military industry stocks rose, with Sichuan Discovery Dream Science & Technology increasing by 20% by the daily limit up, Baota Industry hitting the daily limit up, and Xi'an ChenXi Aviation Technology Corp., Ltd., North Long Dragon New Materials Tech, etc. rapidly rising. On the downside, many high-priced stocks retreated, with Senci Electric Machinery Co., Ltd., Guangzhou Tech-long Packaging Machinery, Shanghai Tianyong Engineering, Qingdao Copton Technology, Sichuan Golden Summit hitting the daily limit down. Weight loss drugs and the automotive industry chain led the declines. Overall, individual stocks in Shanghai, Shenzhen, and Beijing fell more than they rose, with over 4,000 individual stocks falling in the entire market. Northbound funds showed a small net outflow of 221 million yuan. Looking ahead, EB Securities stated that the index may fluctuate around the 3000 point mark in the future, and the next trend may focus on structural market movements, with the rotation of hot spots expected to continue. Popular sectors: 1. Gold stocks performing strongly Gold stocks performed strongly, with Chenzhou City Jingui Silver Industry hitting the daily limit up, and Shandong Gold Mining, Chifeng Jilong Gold Mining, Sichuan Rongda Gold, Zhongrun Resources Investment Corporation, Western Region Gold, etc. all moving higher. Comment: On the news front, in the night trading session of March 4th, the price of gold on the Shanghai Futures Exchange reached a new high of 498.24 yuan/gram. CITIC SEC's research report stated that US economic data fell below expectations, further confirming expectations of a rate cut by the Federal Reserve within the year. , precursor to the development of XIV, confirming market concerns about the US banking industry and commercial real estate industries. The prices of gold both domestically and internationally have reached new highs. 2. Military industry sector rising in the morning The military industry sector strengthened in the morning, with Sichuan Discovery Dream Science & Technology hitting the daily limit up by 20%, Baota Industry hitting the daily limit up, and Xi'an ChenXi Aviation Technology Corp., Ltd., North Long Dragon New Materials Tech, Jiangxi Xinyu Guoke Technology, Beijing Huaru Technology, Beijing Andawell Science& Technology, etc. quickly rising. Comment: Guosheng Securities believes that the national defense military industry is a cyclical industry with a 5-year planning cycle. The development of the industry in the 14th Five-Year Plan period can be compared to that of the 13th Five-Year Plan, and it is likely to see accelerated development in 2024-2025. 3. Storage chip concept stocks becoming active again Infotmic Co., Ltd., JCET Group Co., Ltd., Shenzhen Best of Best Holdings, Huizhou China Eagle Electronic Technology Inc. all hit the daily limit up. Shenzhen Longsys Electronics, Jiangsu HHCK Advanced Materials, Zbit Semiconductor, Inc., Shannon Semiconductor Technology, TongFu Microelectronics, etc. followed the rise. Comment: On the news front, according to reports from Korean media, due to strong demand for AI, orders for HBM and DDR5 chips are expected to increase. Samsung Electronics and SK Hynix are focusing more on high-value DRAM products and considering increasing the production of semiconductor wafer input to accelerate the transition to the 10nm fourth and fifth-generation versions, producing high-value products such as HBM, DDR5, and LP-DDR5. Institutional views Looking ahead, CICC believes that the market trend is positive, but any upward movement will likely be more in the form of fluctuations. CICC: Market uptrend may continue, relatively optimistic about small-cap growth styles in March According to the CICC research report, overall, A-shares are currently in a relatively low valuation, sentiment, and fund state, and future trends are positive, but any upward movement may be more in the form of fluctuations.The emerging rise will also be more reflected in the form of fluctuations. In terms of style rotation, small-cap growth style is relatively favored in March.EB SECURITIES: 3000 points repeated game, still dominated by structural market EB SECURITIES stated that recently, there has been a large accumulation of profits in the market, causing a decrease in the willingness of funds to go long and resulting in a slowdown in the rise of the Shanghai Composite Index. However, with the continuous good news at the industrial level, funds are shifting towards thematic speculation, making the market dominated by structural trends. The index may continue to fluctuate around the 3000-point mark, and the market may continue to be dominated by structural trends in the future, with hot spot rotations likely to continue to play out. This article is reprinted from "Tencent Stock Selection", edited by GMTEight: Wang Jie.