Market Forecasts: Oscillatory Pattern Continues Amid Sector Rotation, 5.4% GDP Growth

Institutional strategists have forecasted that the market is likely to continue its short-term oscillatory pattern. According to Zhongyuan Securities, the market experienced a slight upward oscillation on Wednesday, with sectors such as automobiles, batteries, shipping, ports, and chemical pharmaceuticals performing well. Conversely, sectors like electric motors, optoelectronics, general equipment, and consumer electronics showed weaker performance. The overall market trend was characterized by a slight upward oscillation. The first quarter GDP growth rate of 5.4% indicates a robust economic recovery, with improving corporate profitability and cash flow providing fundamental support for the market. The stabilization and appreciation of the Renminbi exchange rate, along with increased expectations for foreign capital inflows, have contributed to a generally loose liquidity environment. It is anticipated that the market will maintain a stable oscillatory pattern in the short term, with structural opportunities continuing to drive market performance. Policy support and ample liquidity are expected to provide a supportive bottom for the market. However, close attention should be paid to changes in policy, capital flows, and external market conditions.

HuaBao Securities also predicts that the market will maintain a short-term oscillatory pattern, with increased sector rotation. Currently, market focus has shifted from trade conditions to the strength of domestic policy offsets and the resilience of domestic demand. Following a correction in April, the index has recovered to a reasonable level. However, the market's profitability is weak, and sector rotation is accelerating with limited sustainability. It is expected that the market will continue its short-term oscillatory pattern, with sector rotation becoming the norm.

CaiXin Securities suggests that the market will continue its oscillatory pattern, with trading volumes remaining at relatively low levels. Following significant gains, small and micro-cap stocks are experiencing adjustments, while large-cap stocks are stabilizing and providing support to the index. The strategy in this environment should focus on identifying structural opportunities in a low-volume market. By the end of May, with the implementation of domestic policies to boost internal demand and the support of emerging industries, the index is expected to have room for further upward oscillation. Sectors such as the export supply chain, internal demand expansion, high dividend yields, and mergers and acquisitions are likely to remain active.