The value of small cap stock for Suntech Power Holdings Co., Ltd. (NYSE:STP) rose during trading on Friday, as the company benefited from news that demand for solar products unexpectedly rose.
According to a release from Five Star Equities, the delaying of a closure of a German plant and a rise in European demand signified that solar stocks may not take a tumble because of the U.S. tariff. Despite the current economic crisis tearing through the EU, the Chinese solar market has not taken a step back as companies have continued to ask for the products.
"First Solar's comments fit in with what several Chinese companies have also been saying, which is that demand remains strong," said David Smith, the portfolio manager of Gabelli Green Fund.
The Global Times reported that the global supply network that Suntech has will give it more protection against the U.S. tariff than other companies, and it has raised prices in America by a modest 1-to-2 percent.
Shares of the company's stock rose $0.12 to $1.82 at 12:38 p.m. on June 15, an increase of 7.1 percent.
