Behind steel stocks: brokers and public offerings

time2017/11/17

Behind steel stocks: brokers and public offerings

On August 14, steel stocks were sharply pulled up, with the shares of anyang steel trading up and down after the previous sharp rise. Baosteel shares, liusteel shares and shandong steel stock prices also went up. On August 15, steel stocks such as xining steel moved up again. This is the continuation of a strong reversal of the steel sector since July.

While fund ii quarterly results show public offering for iron and steel stocks are low, but since August, the reporter visited many pubic offering, private learned that there are many fund companies involved in this round of the phases of iron and steel stocks rally, economic observer reporter tried to restore the public and private funds here for iron and steel shares investment logic.

The | seller pushes

The second quarter of the fund shows that public funds continue to prefer the main board and the big consumer sector, and are not very "cold" in the coal, steel and other cyclical stocks.

But the change began in early July. Economic observer reporter learned that, in July, the researcher at the brokerage to public funds transfer message: according to the investigation and field survey results of listed companies, grassroots since June production two iron and steel enterprise, some steel prices hit a record high.

Day wind Hank McKinnell securities analyst told reporters "starting on July 14, main rebar contract prices soared to the highest point of 4016 by 3286, or 22.2%, according to data, rebar spot prices since July 14 to August 10, increased from 4076 to 4076, or 7.5%, the faster pace of increase in steel prices in a short period of time."

Due to national policy, he argues, the ban on new capacity, has promoted the steel production can only rely on memory capacity and production and increase production, but due to technical problems, and production or production speed may be slower than expected, in the short term capacity utilisation rates rise space is not large. According to data from Mysteel on Aug. 4, steel and steel stocks were at 945.80 million tons, also in recent years. In a situation where supply is difficult to rise quickly and inventory levels are low, spot prices are likely to remain high even without the expectation of early cash or speculation.

Reporters refer to Wind data found that if the all level of iron and steel industry to division, a month before the rally the solstice on June 1, June 30 day, given by the agencies "buy" or "overweight" rating of the iron and steel stocks have more than 20, occupy the industry stocks more than half.

When it comes to individual stocks, the seven agencies recommend baosteel and *ST hua ling; In addition, as the agency has also includes cultivation co, angang steel, special steel, masteel shares, LingGang shares, bayi iron and steel, new steel shares, river steel shares, steel songshan, such as stocks, these stocks recommended by the seller are more than 3 times the number of times. In the interview, they learned that these stocks were also being heavily bought by the public funds.

Some public funds have started to add to the steel sector, as brokers have pushed and the rankings have been catalysed. The share price of steel listed companies is rising.

The steel index has risen 21.7 percent so far this year to August 18, the third highest in the shenwan primary sector index, according to Wind data. Nearly 60 days ago, it rose 21.65 percent, second only to the non-ferrous metals index.

Among the top 10 stocks that have gained the most since June, the steel companies have held a large number of shares, including fong steel, new steel, nan steel and ling steel.

LingGang co announced, circulation of the top 10 shareholders list, south big data hold 15.2075 million shares, 100 Chinese blue-chip core holding 12.635 million shares, two funds are list in the second quarter of new shareholders, respectively the second and third largest circulation shareholders. The shares rose 51.82 per cent in the year to August 7, with two funds floating around 26 million and 216.1 million respectively.

| public offering for short stir-fry

The prophet's public offerings made a lot of money, but public offerings that gave insight into market games also caught up with the steel stocks.

The reporter understands from many fund companies, large-scale public enlisting fund follow up since late July, a cathay Pacific fund managers who spoke on condition of anonymity, told reporters that the pursuit of relative ranking, few public offering foundation to ignore the past month cycle of represented by iron and steel shares investment opportunities.

He said his fund, which had gained nearly 20 per cent when it stepped into the steel sector, still received a 30 per cent gain in buying, and could imagine the ferocity of the steel sector's rise over the past month.

Data show that in late July, accelerating the steel plates, many public offering fund performance also jumped quickly, before that there is no lack of among them in the open sea, peng hua, melting, cathay Pacific and vote on several company's funds.

In steel futures and the secondary market after the iron and steel shares rose alternately, on August 9, cisa, hope that the steel industry running smoothly, steel prices jumped on to capacity, environmental protection supervision system in institutions and "2 + 26" peak limit production plan to read too much, even is a misreading, steel futures prices fell sharply, the recent hot cycle stocks also showed a sharp retreat.

In the interview, a fund manager revealed to reporters that it has already reduced its investment in the sector. "there is still no significant investment opportunities in the medium to long term, and the short-term profits are already very high." In interviews, some public funds were involved in the short stir-fry of steel stocks, but some were still holding.

| private equity

Some public offerings may have begun to withdraw, but there are private firms. In on finance, seen in July private survey data released from the distribution of industry, electronics industry in the private equity firms attention again in July, medicine and biology was second with 11.62% of the attention, computer, mechanical equipment and heat. In the industry of tens of billions of private equity, besides electronics and medical biology, 17.86% are tied for the first place, and the steel industry is highly favored, with 10.71% more attention than other industries. There is a lot of star stone investment, warm current assets and other well-known private equity. "The rally in cyclical stocks may not be sustainable, and now because of the concentration of sentiment, there may be a wave of gains, but we don't think this is going to be long." Beijing qing and quan capital investment director wu junfeng said.

"From past commodity price movements, it is impossible to curb the rise through industry price limits." "At the moment, steel prices are only going to rise in the first stage," said zhang xun, head of asset investment at yun fu asset management. "after the infrastructure recovery, the surge of steel prices will probably be real."

He told reporters that some steel companies are expected to double their net profits in real time this year, and that the stock is still trading at less than 10 times and the performance is very resilient. "Return to the secondary market, the iron and steel shares after rise is mainly for repair center daily news and expectations in the third quarter, at present, the spot price for secondary stock market pull still exists, advice again pulled focus on steel fundamentals."

Reporter interview also have private equity, he says, the current iron and steel shares of listed companies have been offering high fire, short-term continue to trend higher possibility is not big, more willing to in time in space gradually in the process of steel callback low suction chip.