June 22, 2012 (Chinavestor) We have just had another difficult week with Greece's elections, Spain's record borrowing costs and major global bank downgrades in the front headlines. Not to mention slower Chinese PMI for May and lack of action from the FED to stimulate the economy.
Yet not every sector took a beating. Chinese transportation stocks, airliners in particular, took off on lower kerosene prices. Huaneng Power Int. (NYSE:HNP), the largest Chinese independent power producer, lifted utilities on lower coal prices. Consumer durables and cyclical stocks outperformed the broad market as well thanks to Synutra International (NASDAQ:SYUT) and Acorn International (NYSE:ATV).
But energy, technology and financial names fell hard as outlook for the world economy worsened. Energy prices collapsed, as a matter of fact oil fell below $80 a barrel for the first time in seven months. CNOOC Ltd. (NYSE:CEO), Yanzhou Coal (NYSE:YZC) and Petrochina Co. Ltd. (NYSE:PTR) weighted down the most on the sector. Sector heavy weight China Life Insurance (NYSE:LFC) pulled down financials despite a sound performance from smaller China Finance Online (NASDAQ:JRJC). As far as technology stocks are concerned, the decline was far from universal. Yet sector heavy weight Baidu.com (NASDAQ:BIDU), Youku (NYSE:YOKU) and Sohu.com Inc. (NASDAQ:SOHU) dragged down the rest. Sina Corp. (NASDAQ:SINA) and most solar stocks outperformed the broad market.