More than 4,400 stocks declined across three markets. What happened in the A-share market today?

(Source: China Business News)

Transferred from: China Business News

China Business News (Reporter Ma Wenbo) On March 26, the three major indices of A-shares collectively fell. By the close, the Shanghai Composite Index dropped 1.09%, the Shenzhen Component Index fell 1.41%, the ChiNext Index decreased by 1.34%, and the Beijing Stock Exchange 50 Index dropped 1.57%. The transaction volume in the three markets was 1.957 trillion yuan, a decrease of 235.9 billion yuan from the previous day, with over 4,400 individual stocks in the three markets declining.

In terms of sectors, oil and gas extraction and services, energy metals, batteries, coal mining and processing, banks, and gas sectors had the largest gains, while insurance, wind power equipment, communication services, environmental protection equipment, precious metals, photovoltaic equipment, and computing power leasing sectors had the largest losses.

PART 1

Oil and Gas Sector Leads Gains

Today, the oil and gas sector surged following the rebound in international oil prices, with the A-share oil extraction and service sector leading the gains. Blue Flame Holdings hit the daily limit, with Shouhua Gas and CNOOC Engineering also rising.

Market optimism regarding a short-term ceasefire has cooled, and traders are refocusing on the oil supply risks due to the ongoing blockade in the Strait of Hormuz. This morning, both WTI and Brent crude oil prices surged. WTI briefly surpassed $92 per barrel, rising nearly 2%.

Analysts state that the current shipping volume through the strait is far below normal levels, with about 20% of global crude oil transportation channels impeded, directly driving up energy prices. In the short term, oil prices will continue to be affected by Iran’s negotiation stance and the actual situation in the Strait of Hormuz.

Raul de Blank, Senior Chairman and former CEO of Goldman Sachs, believes that the violent fluctuations in the energy market reflect investors’ pricing of the long-term impacts of supply disruptions. Even if a ceasefire agreement is reached, repairing infrastructure and restoring supply chains will take months or longer, which will continue to push up energy costs and affect global inflation expectations.

PART 2

Battery Sector Rises

The battery supply chain surged this morning. By the close, Shida Shenghua hit the daily limit.

On the evening of March 23, news emerged regarding the escalation of Zimbabwe’s ban on lithium ore exports. The Zimbabwean government previously planned to fully ban ore exports by 2027, but suddenly announced an indefinite suspension of all raw ore and lithium ore exports at the end of February this year. Currently, Zimbabwe’s ban on lithium exports has lasted nearly a month, with no news of a lift, potentially exceeding the previous market expectations.

Institutions generally assess that the optimization of the supply-demand pattern will drive continuous recovery in industry prosperity, with companies possessing quality resource reserves and cost control capabilities likely to gain an advantage in this cycle.

Zheshang Securities believes that in this cycle, on the demand side, the demand for energy storage batteries exceeds expectations, and commercial vehicles are expected to continue to release demand for power batteries; on the supply side, upstream material capacity is being cleared, the competitive environment is gradually improving, and prices are expected to rebound.

Dongguan Securities states that the overall growth expectation for lithium battery demand remains optimistic, with cautious capacity expansion on the material side, and the supply-demand pattern of the industry chain tending to improve, making upward price trends in multiple links likely, with both volume and price expected to rise.

The research team at AVIC Securities believes that since 2025, the midstream materials and battery sectors have entered a cyclical reversal stage, with lithium battery materials showing a trend of simultaneous volume and price increases, greater earnings elasticity, and expected to lead the completion of profit recovery, providing core support for the strengthening of the sector.

(Note: Images sourced from Tonghuashun; this article does not constitute any investment advice)