A solar sector exchange traded fund is rising against broad selling pressure across the equities market Wednesday as a Chinese stock component surges.
The Guggenheim Solar ETF (NYSEArca: TAN) rose 3.6% Wednesday. TAN has increased 4.2% over the past week and is up 20.6% year-to-date. [Solar Industry, ETF Should Shine Bright]
Jolting the solar ETF higher, Hanergy Thin Film Power Group (OTC: HNGSF), which makes up 17.3% of TAN’s portfolio, jumped 20.3% Wednesday to $0.824 per share on about four times its average daily volume. The Chinese solar supplier also increased almost 10% to $0.69 Tuesday on high volume as well.
Hanergy Thin Film Power Group, China’s largest supplier of thin-film solar equipment and products, surged Wednesday after the company revealed an improved forecast of 2014 net profit and growth in transactions with third-party customers, reports Russell Flannery for Forbes.
Specifically, Hanenergy projected net profit for 2014 to rise “more than” 55% year-over-year.
Moreover, other environmentally friendly shares have been strengthening in response to the growing discussion over the country’s severe pollution problem, which was recently highlighted in a 104-minute documentary video over the weekend titled “Under the Dome.”
“We believe this video may have macro implications…,” Deutsche Bank’s Zhang Zhiwei, according to the Financial Times. “To our knowledge, this is the first time a video by an independent journalist has been allowed to cause such social impact… This suggests to us that the government will likely take environmental protection more seriously, rebalancing the economy from merely concentrating on an investment-intensive model.”