Morning Review: The Shanghai Composite Index rose 0.26%, with sectors like pharmaceuticals and chemicals leading the gains, and lithium battery concepts remaining active.

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On the morning of March 27, the main stock indices in both markets fluctuated upward, with the Shenzhen Component Index and the ChiNext Index rising nearly 1%. Approximately 3,800 stocks in the A-share market were in the green.

By the time of the midday close, the Shanghai Composite Index was up 0.26% at 3,899.12 points, the Shenzhen Component Index rose 0.93%, and the ChiNext Index increased by 0.83%. The total trading volume in the Shanghai, Shenzhen, and North markets was about 1.15 trillion yuan.

On the market, sectors such as electric power, coal, banking, and insurance declined, while non-ferrous metals, pharmaceuticals, chemicals, semiconductors, and agriculture surged. Sectors like steel, liquor, and retail went up, and innovative drugs, rare earths, and lithium battery concepts were active.

Dongwu Securities stated that technically, the rapid contraction in trading volume indicates a cautious attitude among market funds to some extent. Funds that had exited earlier have not significantly flowed back in, and the confidence of on-site funds is quite weak amid rapidly changing news. Under the influence of news, the market has shown a state of decreasing volume and downward movement. It is worth noting that the main risks currently lie in external geopolitical conflicts. If signals of easing emerge again, the upward momentum of the market remains strong. Overall economic fundamentals are relatively strong, and the A-share market still shows resilience, requiring an optimistic attitude at this stage.

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