Brokerage Morning Meeting Highlights | US-Iran Conflict Erupts Driving Precious Metals and Aluminum Up

Last Friday, the A-share market closed out February. By the close, the Shanghai Composite Index rose by 0.39%, the Shenzhen Component Index fell slightly by 0.06%, and the ChiNext Index dropped by 1.04%. The Shanghai Composite Index had a cumulative increase of 1.09% in February, securing its third consecutive monthly increase. The Shenzhen Component Index saw a cumulative increase of 2.04%, while the ChiNext Index had a cumulative decrease of 1.08%. After the Spring Festival, the trading volume of the Shanghai and Shenzhen markets exceeded 2 trillion yuan for four consecutive trading days. In terms of sectors, coal, electricity, non-ferrous metals, gas, steel, and petroleum sectors experienced strong increases, while sectors like computing power, rare earth metals, and gold concepts were active. Meanwhile, the paper and semiconductor sectors saw declines. At a securities morning meeting today, CITIC SEC believed that narrative promotion and price increases are still the main driving factors for the market. China Securities Co.,Ltd. pointed out that the outbreak of conflict between the US and Iran is driving up precious metals and aluminum prices, while CICC stated that the peak season for lithium battery production is approaching, and the recovery of high-slope rates is driving the spring market. In conclusion, the market is being driven by narrative promotion and price increases, with various sectors categorized based on their driving factors. Market signals such as the outbreak of risk in the Middle East and policy expectations related to the upcoming National People's Congress may continue to strengthen price increase clues. The market is expected to continue being driven by price increases in March.