Construction materials rose 8.36%

Starting in late July, local cement companies in China have raised their prices, which has created a share price performance for listed companies related to construction materials. At the same time, as the type of stagflation since the beginning of the year, building and building materials currently have some compensatory growth momentum. The positive factors in both areas broke out, causing the Shenwan Building Materials Index to soar for 8.36% over the week, ranking the first in the industry sector gains. The second car index was 2.29 percentage points.

Last week, the Shenwan Building Materials Index continued to close at the Yang Xian. By Friday's close, the 20th, 5th, and 10th averages have all been overcome, and the SZSE half-year line has been closed. In the context of recent market sentiment and low trading conditions, On Wednesday, the sector was even more significant, with refraction funds expected to heat up, and the willingness to enter the game increased. Of the 60 constituents of the normal trading, 55 had risen last week, 49 of which outperformed the broader market. A total of 27 stocks rose by more than 10%. Han Jian Heshan, Weixing New Materials and Huaxin Cement rose 61.08%, 30.06% and 29.99%, respectively, and led other constituent stocks.

According to data monitoring, the current cement price has dropped to the lowest point in 7 years, and the national high standard cement price has dropped to 262 yuan/ton. The profitability of the industry is second only to that of 2005, and companies generally have higher prices. In late July, cement prices in Hunan, Hubei, Gansu, Shaanxi, and other regions were the first to increase. The market generally believes that the follow-up price increase or spread out from the above-mentioned areas of high concentration, the overall profitability of the industry in the fourth quarter is expected to reverse. In addition, this year's building materials sector has clearly underperformed the broader market, and its performance is not as good as the steel and coal sectors that are under tremendous pressure in terms of production capacity. In the first-tier industry, the trend is at the bottom. The stagflation market gives this sector a strong demand for compensatory growth. Coupled with the fact that the market did more than usual in the past week, the direction of the hot spots was quickened, and the improvement of the economy was favored by the stronger construction materials industry.

Looking ahead to the market, the sector's compensatory growth momentum is not yet over, benefiting from Beijing’s bid to host the Olympic Winter Games, accelerated Beijing-Tianjin-Hebei coordinated development, and the “One Belt and One Road” revitalization plan. Building materials including cement and underground pipe networks will continue to rise. Larger. Up to now, the estimated investment scale for large-scale infrastructure projects such as railways, urban rail transit, and airport construction approved by the National Development and Reform Commission this year has exceeded 300 billion yuan. At the same time, a number of local major construction projects have also started.