ETFs pegged to solar energy companies rallied nearly 10% on Wednesday on reports China will spend more money to support the battered sector, and an analyst upgrade.
“Chinese solar stocks shot up on Wednesday after reports indicated that the Asian country had taken steps to further its support for the ailing industry,” Reuters reports.
Guggenheim Solar ETF (NYSEArca: TAN) jumped 9.8% in afternoon trading while Market Vectors Solar Energy ETF (NYSEArca: KWT) rose 7.8%. [ETF Spotlight: Solar Energy]
In other sector news, analysts at Susquehanna boosted their price target on First Solar (NasdaqGS: FSLR), reports Schaeffer’s Investment Research. “The shares have also outperformed the broader S&P 500 Index (SPX) by nearly 40 percentage points during the past 40 days,” it said. “Nevertheless, bearish speculation remains alive and well on FSLR. Short interest accounts for a whopping 44% of the equity’s available float.”
“Buoying the company’s soaring share price is a long list of major projects backed by strong industry tailwinds that suggest the solar sector could be making up some lost ground,” adds Wall St. Cheat Sheet.