On Monday (July 27), the three major A-share indexes fluctuated weakly. As of the close, the Shanghai Composite Index rose 0.26% to 3205.23, the Shenzhen Composite Index rose 0.32% to 12976.87, and the gem Index rose 0.15% to 2631.76.

The strong performance of the non-ferrous metals sector, as of the close, the gold sector rose 6.2%, ranking first in all industries; scarce resources sector rose 4.6%.

Within the plate set off a trading tide, Silver Nonferrous, Huayu Mining, Shengda Resources, Chifeng Gold, Yuguang Gold and lead, Western Gold and other stocks rose by the limit.

The soaring price of gold detonates the non-ferrous plate.

On the morning of July 27th, the international gold price surpassed the all-time high of 1921.15 US dollars per ounce and reached a new high. As of 18:00 Beijing time on the 27th, the main company of US metal futures gold (2008) was close to the US $1940 mark.

Non-ferrous stocks are favored by funds

According to Wind data, the fund significantly increased its holdings in the non-ferrous metals industry in the second quarter of 2020. In the second quarter of 2020, the market value of non-ferrous sector institutions rose by 41%, and the proportion of institutional positions rose to 1.6% from 1.4% in the first quarter of this year, an increase of 0.2 percentage points.

According to Anxin Securities estimates, since 2005, 2006Q1murQ3mai 2008Q3murQ4, 2016Q2-Q3, 2017Q2-Q3, 2018Q1 non-ferrous plate appeared a more obvious overmatch, the rest of the time in a state of low configuration.

The proportion of 2017Q3 institutional positions reached a historically high level of 4.7 per cent and experienced a brief overallocation, then the low allocation began and intensified, and the low allocation of 2020Q2 moderated from the previous quarter, but 1.6 per cent of institutional positions were still below the historical average.

From a variety point of view, the total market capitalization of 2020Q2 cobalt-lithium plate is the largest, followed by gold and copper plate.

According to Wind data, the top non-ferrous stocks in the second quarter are Ganfeng Lithium (7.692 billion), Zijin Mining Group (7.169 billion), Shandong Gold Mining (2.148 billion), Huayou Cobalt (1.529 billion), China Molybdenum (1.241 billion), Tianqi Lithium (959m) and Chifeng Gold (881m).

With regard to the logic of fund increase in the allocation of non-ferrous sectors, Societe Generale Securities said that with the release of demand in areas such as domestic infrastructure and housing completion after the epidemic, which was boosted by special debt, the penetration rate of European trams was higher than expected, and the domestic multi-ministry increased new energy policy, and the allocation of non-ferrous sectors by public funds gradually increased.

For the future of the non-ferrous sector, founder Securities said that the valuations of the non-ferrous metals sectors are still at historically low levels, and with the recovery of metal prices, the relevant companies are expected to reap the double repair of performance and valuation.