Peripheral disturbances are unlikely to easily shake the market’s medium-term upward foundation. Institutions suggest positioning for industry trends moving upward by buying on dips.

On April 7, the A-share market saw its first trading day after the Qingming holiday. During the holiday, overseas markets such as Japan and South Korea saw choppy but upward movements; international oil prices and gold prices diverged, and overall market risk appetite improved slightly. Against the backdrop of continued geopolitical conflict in the Middle East and lingering uncertainty in the international oil-price outlook, how the A-share market will play out in the coming period remains a closely watched question. Industry insiders believe that, in the short term, uncertainty surrounding the U.S.-Israel-Iran conflict still suppresses market risk appetite, but it has not shaken the fundamental basis for the longer-term upward trend in A shares. As a series of positive signals gradually become more evident, the market is expected to continue moving higher in the second quarter. For future allocation, in the near term, it is recommended to keep positioning at lower levels in industries that benefit from policy support and favorable industry trends. Growth themes remain the strongest main line of this round of market activity, and sub-sectors such as AI compute power, semiconductors, storage, and innovative pharmaceuticals are worth watching. (China Securities Journal)