On March 13, the three major A-share indexes opened mixed and then maintained a fluctuating trend, with rapid rotation of thematic sectors. By the close of trading, the Shanghai Composite Index fell 0.1%, the Shenzhen Component Index fell 0.63%, the ChiNext Index fell 0.96%, and the Beijing Stock Exchange 50 Index fell 1.12%. The total turnover of the Shanghai, Shenzhen and Beijing stock markets was 2.4606 trillion yuan, a decrease of 67.7 billion yuan from the previous day, and more than 3,800 stocks in the three markets fell.
In terms of sector performance, coal mining and processing, wind power equipment, chemical fibers, electric power and other sectors led the gains, among which the coal sector became the leading sector of the day. Driven by the rise in international oil prices, market concerns about energy security have heated up, and coal, as an alternative energy source, has been sought after by funds. Huadian Energy achieved a 3-day consecutive limit-up, and stocks such as Zhengzhou Coal Industry, Yankuang Energy and Shaanxi Heibao rose by the daily limit strongly.
A research report by Shenyin & Wanguo Securities pointed out that there is a significant substitution relationship between crude oil and coal. The continuous rise in oil prices will force some power generation and industrial users to switch to coal with lower costs, driving up the bottom of coal procurement demand and prices. Changjiang Securities estimates that if the Strait of Hormuz is blocked for a long time, the global demand for power coal may increase by 84.86 million tons annually, and the full-load operation of China’s coal chemical plants alone will drive domestic coal consumption by nearly 50 million tons.
Caixin Securities said that there is no continuous leading direction in the current market, and funds are mainly switching between high and low hot spots. The market may maintain a fluctuating pattern in the short term. In the medium and long term, A-shares have strong resilience supported by policies. It is recommended to pay attention to policy-supported areas such as energy and new infrastructure, and reasonably control positions to cope with market fluctuations.
