The world’s largest solar panel maker, Yingli Green Energy Holding Co., showed declines among their share prices last week.
It fell 9.1%, snapping a two-week positive streak. Chinese counterpart Trina Solar fell 5.3% for the week on the New York Stock Exchange.
The US Commerce Department had released a preliminary report on Friday 25 July, indicating that some Chinese and Taiwanese companies had been dumping their products in the US at unfairly low prices. It’s now mulling tariffs as high as 165% in a ruling to be finalised in December 2014.
This has compounded the worse outlook on margins for these manufacturers who are already facing weaker prices amid a supply glut.
On a technical level, both Yingli and Trina are facing a downward bias, after breaking below their 50 daily moving averages (DMA).
Ahead of the Singapore Open
We head into the first full week of August following a global sell off on Friday, triggered by negative sentiment from Argentina’s debt default.
Last week, there were some positive US macro data that provided some cause for optimism, along with some strong Chinese manufacturing PMI figures for July.
With few market catalysts today, investors are likely to hold back and look selectively at stocks for bargains.
We are calling for the MSCI Singapore to open 0.41% up at 383.45 points, and the Hang Seng Index or Hong Kong HS50 to rise 0.14% up to 24,570.2 points