KINGNET(SZ:002517) 2 1 Shi Ji Jing Ji Bao Dao·2025-07-01 09:37Market Overview - On the first trading day of July, the three major indices showed mixed results, with the Shanghai Composite Index rising by 0.39% and the Shenzhen Component Index increasing by 0.11%, while the ChiNext Index fell by 0.24% [1] - The total trading volume in the Shanghai and Shenzhen markets was 1.47 trillion yuan, a decrease of 20.8 billion yuan compared to the previous trading day [1] June Performance - In June, the A-share indices experienced a steady rise, with the Shanghai Composite Index closing above 3400 points at the end of the month, marking a 2.90% increase, while the Shenzhen Component Index rose by 4.23% and the ChiNext Index increased by 8.02% [2] - Among the 31 primary industries, 23 saw gains, with the top three performing sectors being Communication (14.09%), Defense and Military Industry (10.89%), and Nonferrous Metals (9.26%) [2] Market Sentiment and Predictions - Multiple institutions believe that further market breakthroughs may require time, with short-term trends likely to remain volatile [4][5] - East Wu Securities noted that the Shanghai Composite Index's recent surge was a result of a return to trading volatility, driven by favorable factors such as expectations of interest rate cuts by the Federal Reserve [4] - Guosheng Securities indicated that the market has potential for breakthroughs, suggesting active participation in potential breakout opportunities while maintaining a cautious trading mindset [4] Sector Recommendations - Institutions recommend focusing on sectors with high earnings certainty, such as Consumer Goods, Chemicals, Military Industry, and Lithium Batteries, as the earnings season approaches [5] - Stable asset classes like Gold, Coal, Oil and Petrochemicals, and Banks are also highlighted as important [5] Top Stock Picks for July - Kayi Network (002517.SZ) was the most frequently recommended stock, mentioned five times by various brokerages, indicating strong institutional interest [6] - Other notable stocks include Zijin Mining (601899.SH) and Huadian Electric (002463.SZ), each mentioned four times [6] Company-Specific Insights - Kayi Network is focusing on AI products, with a promising emotional companion product expected to launch in 2025, and a strong pipeline of new game IPs [8] - Zijin Mining is expected to benefit from rising gold prices due to increased central bank purchases and tightening supply in the copper market [9] - Huadian Electric is positioned to benefit from rapid advancements in the computing industry, with strong order growth anticipated [10] - Muyuan Foods (002714.SZ) is recognized as a leading player in the domestic pig farming industry, with stable production capacity and potential for valuation recovery [12][14]