March 15, 2010 (Chinavestor) The overbought monitor didn't lie - despite strong advanced in the past shares of Baidu.com (NASDAQ:BIDU) weren't overbought, leaving room to the upside. The $27.01 advance by 1:00 P.M. renders advances of other Chinese stocks minuscule. But it's worth noticing the advances of Shanda Interactive (NASDAQ:SNDA) and Focus Media Holdings (NASDAQ:FMCN) when 90% of all Chinese stocks listed in New York are in the red.
Falling oil put pressure on Petrochina (NYSE:PTR), the largest Chinese oil producer. The weakness of China Eastern Airline (NYSE:CEA) is not a surprise given her tumble in Hong Kong this morning -as we pointed out in the pre-market report. Noticeable decliners include Ctrip.com (NASDAQ:CTRP), Home Inns & Hotel Management (NASDAQ:HMIN) and China Telecom (NYSE:CHA).
Looking at the big movers for today, shares of Baidu.com (NASDAQ:BIDU) dominate the chart below. The stock cleared the $500 mark for the first time in February then went on to break through $550 and now $600 is within reach. For a technical reading of the stock, read Baidu makes it to $550.
Shares of Shanda Interactive (NASDAQ:SNDA) advanced by 1:00P.M. despite a negative market sentiment. The company reported revenue growth but net income fell from previous quarter, as did for most online game developers and operators. Shanda, Perfect World report Q4.
The advance of shares of Focus Media Holdings (NASDAQ:FMCN) are noticeable. The increase is taking place with heavy volume, a sign that the rally might extend into tomorrow and beyond.
There is a full house on the negative end of the China stock universe. Falling oil hurt oil producers like Petrochina (NYSE:PTR). Weakness of China Eastern Airlines (NYSE:CEA) was predictable after a falling stock price in Hong Kong earlier this morning. While all major Chinese airliners ended the day in the red in Hong Kong, the -3.9% fall of China Eastern Airlines (HKG:0670) qualified it to be the worst performer out of the 42 components of the Hang Seng Index.
Highly volatile China Automotive Systems (NASADAQ:CAAS) fell -5.09% by 1:00 P.M. Such magnitude of the fall is normal for this stock and shouldn't be taken seriously as an indication for future price moves.
Shares of Ctrip.com (NASDAQ:CTRP) shed $-1.11 by 1:00 P.M. While the company is looking good from a fundamental point of view, high valuation takes a tool when market sentiment sours. Ctrip '09 Q4 disappoints. How bad is it?
Home Inns & Hotel Management (NASDAQ:HMIN) is hurt after fourth quarter earnings came out. While we're of a view that HMIN deserves better, the Street thinks differently. Don't be goofed by Q4 results. HMIN remains undervalued.
Shares of China Telecom (NASDAQ:CHA) fell -1.97% after hitting a plateau on March 8. The stock became overbought -as we pointed out - and current fall was expected. This is what we said on March 4 right before the decline in the Overbought China stocks to watch on Thursday:
"The advance of China Telecom (NYSE:CHA) might look small when measured in percentage points but in terms of stocks characteristics a +6.6% advance for this sleepy stock is remarkable. Deutsche Bank upgraded China Telecom (NYSE:CHA) and China Unicom (NYSE:CHU) igniting the rally, but investors have to be careful with these stocks from now on. NYSE listed large cap China stocks don't get to touch the theoretical highs before they get overbought. CHA looks similar to China Eastern Airlines (NYSE:CEA), a stock that advanced 10% last week thanks to a five days winning streak - and then have fallen four consecutive days in Hong Kong, including this very morning. Again, China Telecom (NYSE:CHA) looks overbought and might take a breather."
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