Main capital increases in two major industries: optical module leaders face a cooling market

According to statistics, the net outflow of major funds this week (March 9 to 13) exceeded 146 billion yuan.
Dividing by Shenwan’s first-level industry classification, the main fund net outflow in the machinery equipment and non-ferrous metals industries exceeded 19 billion yuan; computer, communications, defense and military industry, electronics, and other sectors followed closely, with net outflows of over 15 billion yuan each.
In terms of net inflow, the basic chemicals and household appliances industries saw main fund net inflows of over 1 billion yuan, at 6.45B yuan and 1.07B yuan respectively.
CITIC Securities states that, driven by the post-holiday restart and rising oil prices, among the 154 chemical products tracked, the diffusion index (the proportion of categories with weekly price increases) reached 60.39%, the second-highest point in the past decade after October 2021’s energy consumption dual control.
The firm suggests that with the ongoing US-Iran conflict, the reassessment of the energy security role of coal chemical industry, as well as price increases and arbitrage opportunities for small chemical varieties, should be paid attention to.
On the news front, geopolitical risks have pushed up oil prices, and since most coal chemical products are derived from petroleum, the widening oil-coal price gap benefits the coal-based product industry chain significantly.
European natural gas prices have soared, putting pressure on chemical product costs, but additive-type small products benefit from low downstream cost proportions and good price increase foundations.
From amino acids, vitamins, and other food additives to anti-aging agents and plastic additives, price hikes are already being realized.
( Securities Times )