NANJING, China (
) -- On Thursday, a news report of a sooner-than-expected cut in Germany's solar feed-in tariffs led to one of the biggest selloffs in popular Chinese solar stocks in recent market history.
The little Chinese solar firm that could -- could eek out a gain during Thursday's solar rout, that is -- was
China Sunergy's 0.2% gain on Thursday was tops in the solar sector. What's more, China Sunergy experienced near-quadruple its average daily trading volume on Thursday -- with 2.6 million shares traded versus a daily average of 700,000.
China Sunergy's Thursday run may have been far better if news of the German solar tariff reduction had not broken mid-morning, sending the solar sector into a selloff. China Sunergy had surpassed its average daily volume of shares 90 minutes after the market open on Thursday morning, and its shares had spiked 8% before the solar investor jitters and short selling reverberated through the solar sector.
There was no specific news from China Sunergy on Thursday. And even positive news in the solar sector on Thursday was buried beneath the
report that Germany would move ahead of schedule to cut its solar feed-in tariffs.
The big news in solar on Thursday morning was related to geographic plays by some of the big solar-module and solar-systems companies.
First Solar announced on Thursday that it had acquired private land in the U.S. on which to develop solar farms.
Canadian Solar announced on Thursday a deal in Japan, selling off a chunk of its Japanese subsidiary to a residential housing development and rooftop expert -- to ink an 18 megawatt solar panel distribution deal.
First Solar and Canadian Solar had both started Thursday with positive news, sending shares up, but both solar firms were down big by day's end, with First Solar shedding more than 5.5% from its share price, and Canadian Solar shedding close to 9% from its share price.
In the case of China Sunergy, Thursday was the odd day during which the worst solar news in some time was delivered at the same time that technical analysis indicated that China Sunergy had moved above its 50-day moving average of $4.39 and its 200-day moving average of $4.21.
Such data is often viewed by technical traders as a sign to go long on a stock, believing it has broken through a resistance zone impeding a higher share price.
China Sunergy had by far the largest gain in the solar sector with its miniscule 0.2% gain. And on a day when some of the recent big gains made by Chinese solar firms like
were at least partially wiped out, recent Chinese losers fared better, even on a down day.
for example, which has suffered in the market recently as a result of its high debt-to-total-assets ratio, was only down 0.3% on Thursday.
On Wednesday, some high-flying Chinese solar companies --
Yingli Green Energy
Solarfun Power Holdings
( SOLF) -- took big hits, even as the technology sector traded up, suggesting that investors may have reached a short-term limit in some of these ascendant Chinese solar stocks.
On Thursday, the news out of Germany only increased that selloff, with
leading the retreat among the once-high-flying Chinese solar stocks.
-- Reported by Eric Rosenbaum in New York.
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