Morning Trend | Pharmaron's capital withdrawal intensifies, is the window for pharmaceutical outsourcing revisiting?
Pharmaron was under pressure throughout the day yesterday, with a noticeable phenomenon of capital withdrawal. The recent ratings of the pharmaceutical outsourcing industry have been downgraded, and negative fundamentals have continuously emerged, further intensifying risk aversion. The company has lost multiple short-term support levels, and the rebound efforts have been weak, with extremely scarce buying interest at low levels, ultimately closing within a weak channel. The industry news is pessimistic, with several leading outsourcing companies publicly reporting a decline in order growth and delays in overseas projects, which continue to heighten market concerns. On the technical front, the intraday suppression signals have been continuously strengthening, and there has been no significant increase in trading volume, indicating that the main funds are primarily adjusting their positions and mostly observing. The key support level of HKD 30.10 was once in jeopardy, with short sellers dominating the market and intraday risks rising. Although there is still a possibility of a short-term policy reversal or a rebound in the pharmaceutical sector driving a sharp recovery, its sustainability and strength are questionable. From an operational perspective, it is recommended to closely follow the progress of industry orders and changes in regulatory policies, and to be cautious of risks arising from rapid intraday pullbacks and unusual movements, strictly controlling positions and stop-loss measures. At this stage, it is advisable to wait for sentiment to repair and signals of main fund inflows, focusing on short-term defense
Pharmaron was under pressure throughout the day yesterday, with a noticeable withdrawal of funds. The pharmaceutical outsourcing industry has recently seen downgrades in ratings, and negative fundamentals have continuously emerged, further intensifying risk aversion. The company has lost multiple short-term support levels, with weak rebound actions and extremely scarce buying interest at low levels, ultimately closing within a weak channel.
The industry news is pessimistic, with several leading outsourcing companies publicly reporting a decline in order growth and delays in overseas projects, which continue to heighten market concerns. On the technical front, intraday suppression signals have been strengthening, and trading volume has not shown significant expansion, indicating that major funds are primarily reallocating and remaining cautious. The key support level of HKD 30.10 was once critical, with short sellers dominating the market and intraday risks increasing.
Although there is still a possibility of a policy reversal or a rebound in the pharmaceutical sector driving a short-term recovery, the sustainability and strength of such a move are in question. From an operational perspective, it is advisable to closely monitor industry order progress and regulatory policy changes, and to be aware of the risks associated with rapid intraday pullbacks and unusual movements, while strictly controlling positions and stop-loss measures. At this stage, it is prudent to wait for sentiment to stabilize and signals of major fund inflows, focusing on short-term defense
