A-shares Midday Review: Shanghai Index Falls 0.71% in First Half, Resource Cyclical Stocks Like Nonferrous Metals and Steel Lead Declines

The three major A-share indices experienced mixed movements in the morning session. By midday, the Shanghai Composite Index fell 0.71%, the Shenzhen Component Index dropped 0.7%, the ChiNext Index rose 0.18%, and the Beijing 50 Index declined 0.65%. The combined half-day trading volume of the Shanghai, Shenzhen, and Beijing markets was 1.5178 trillion yuan, an increase of 1.1 billion yuan compared to the previous day. Over 3,400 stocks in the market declined.

In terms of sectors and themes, the top gainers included liquor, grain concepts, chemical fibers, port shipping, banking, cross-border payments, tourism and hotels, oil and gas extraction and services, and CRO concept stocks. The biggest declines were seen in precious metals, steel, energy metals, minor metals, glyphosate, coal mining and processing, electricity, and power grid equipment.

On the market, gold spot prices continued to decline for the second consecutive week, triggering a drop in precious metals and rare metals sectors, with Shan Jin International, Western Gold, and Yunnan Copper leading the declines. Chemical stocks surged initially but then pulled back, with epoxy propane leading the decline; Wanhua Chemical, China National Chemical Corporation, and others fell more than 5%. Additionally, previously strong-performing power grid and electricity sectors also saw adjustments, with Wangedianqi and Chint Electric leading the decline.

Meanwhile, tensions in the Middle East remain high, and funds continue to speculate on grain concept stocks. Agricultural development seed companies hit the daily limit, with Nongfa Seed Industry, Kangnong Seed Industry, and Dunhuang Seed Industry also rising. Liquor and food processing sectors defied the trend and advanced, with Xiwang Food hitting the daily limit, and stocks like Kweichow Moutai and Wuliangye also seeing gains.