April 9, 2010 (Chinavestor) The price of oil fell for the third day in a row, bringing the solar stock rally to an end. But the overall market advanced as fresh signs that the U.S. economy is growing sweetened the mood of investors. Chinese stocks advanced in Hong Kong and in Shanghai on Friday. The rally was universal in both Asian markets, stocks that advanced outnumbered those that fell 10:1 ion Shanghai and 7:1 in Hong Kong. The Hang Seng Index (INDEXHANGSENG:.HSI) rose+5.5% for the week while the Shanghai Composite Index (SHA:000001) took a breather after a similar rally in the past two months.
U.S. listed Chinese shares ended the day higher - both small and large caps advanced. Shares of Vanceinfo Technologies (NYSE:VIT) advanced the most in percentage points on Friday followed by 51job Inc. (NASDAQ:JOBS) and AgFeed Industries (NASDAQ:FEED).
Stocks with the largest percentage point loss came from the solar sector. We highlighted how vulnerable Chinese solar stocks were to the price of oil - "But just how vulnerable Chinese solar plays have become is evidenced by the fact that they all were in the red at noon on Thursday along with the broad market." - we wrote this morning in the Overbought China stocks to watch on Friday.
To capture momentum of large cap stocks, the following indicator is the best to use. This one ranks Chinese stocks by dollar price change, something that higher priced large cap stocks do.
Baidu.com (NASDAQ:BIDU) advanced $5.62 or .91% and is getting comfortable above $600. Chinese energy stocks soared. CNOOC Ltd. (NYSE:CEO), a pure oil producer, rose the most followed by Petrochina (NYSE:PTR), the largest Chinese oil producer, and Sinopec (NYSE:SNP), the largest refiner in Asia. Chinese telecoms did well thanks to news that mobile carriers plan to invest RMB400 billion in 2010 in 3G network upgrades. A possible Yuan revaluation will boos t the bottom line of Chinese carriers in dollars as well.
Chinese solar stocks fell - large cap Trina Solar (NYSE:TSL) the most . For a list of the "biggest losers" on Friday, see chart above.