Huatai Securities: External conflicts and holiday effects may suppress risk appetite, attention may turn to shifting towards profit anchors in the future.

Huatai Securities' strategy research report stated that this week, geopolitical tensions have caused global liquidity tightening expectations to fluctuate repeatedly. The market sentiment is extremely cautious, with intense micro-games occurring within the backdrop of changing macro pricing logic. Funds are starting to seek certainty in the energy sector, but it is important to note that in a market with shrinking trading volume, the sustainability of single sector rallies will be tested. Therefore, the core focus in the game direction lies in the industry chain's "cost pass-through" ability. Looking ahead, the current weak balance will soon face tests from multiple windows of opportunity. Looking forward, external variables such as geopolitical changes and internal factors like the "pre-holiday effect" will suppress trading activity. However, from a cross-month perspective, as Chinese A shares enter a period of intensive financial report disclosures in April, the market's pricing anchor is expected to gradually penetrate the emotional disturbances and return to fundamental verification. In terms of allocation, it is advisable to pay moderate attention to coal, power, and chemical raw materials sectors which potentially benefit from high oil prices and have cost pass-through capabilities, as well as positioning basic needs consumption at low levels.