Daily Report 050716 2016-07-05
Stock Index
Yesterday stock index rallied a lot; military industry and non-ferrous industry increased largely. Since May, several times drop of stock index all be bolstered. Since authorities claimed quit strong simulation, joining MSCI stopped, UK left EU, and private investment dropped; default bond shocked stock index, and reducing share-holding increased. But IF is bolstered at 3000, and buying power is strong. Stock index is not sensitive with macro event of domestic and overseas, along with economy data, which indicates that domestic economy downward risk has been released. The recovery of industry enterprise profit proved this. What’s more, confirmedly supply-side reform brings market better prediction: President Xi’s ‘rejuvenate nation through science and technology’, de-capacity, and decrease enterprise leverage; strengthen stock market governance. Overall, underneath bolster is strong; buy at the time of recovery. Index still has the space of rebound.

Domestically, DCE soybean is with strong oil and weak meal; oil against meal ratio reached the bottom and rallied. Pay attention to the persistency. Spot goods side, domestic soybean spot price is stable. Food soybean purchasing price increased to RMB 4100-4120/ton. Shortage of supply decreased trading volume. Market supply and demand gap may expand after July, which may boost spot goods price. Soybean meal side, spot goods price of several places increased. Costal district oil plant quotation is around RMB 3500-3600. Soybean meal now face the unclear factors of high quantity July to August import soybean and pig breeding data. Import soybean cost increased, and domestic oil plants are with low operation rate. As for operation: cautious with DCE soybean price chase, and middle-term can go long.

Yesterday PP futures opened high and reached limit; opened at 8180 and closed at 8379. Trading volume decreased 9374 lots to 625000 lots. Holding volume increased 13248 lots to712000 lots. Spot goods side, yesterday domestic PP futures market continued increasing trend, and price increased around RMB 100-300. Some Sinopec increased price to bolster market, and reached limit. Without other news side, traders followed with high quotation, and some traders are unwilling to sell with lower price. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 7900-8000/ton, RMB8250-8300/ton and RMB7300-8400/ton, respectively. As for operation, current moving average system arranges in long. MACD red column lengthen, which is strong tendency.
                                                    Dong LV (Investment Certificate NO. TZ008452)