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Thursday's Asia ADR Recap: AirMedia

Stockpickr Staff

"Markets are going to remain within a range with bouts of volatility as they react to each and every development," said Prashant Bhansali, a director at Mehta Equities.

India's Forward Markets Commission said it has halted futures trading for four months from today on soybean oil, rubber, chickpeas and potatoes. Some traders said the ban is nothing more than a political move that will do little to stop rising food prices.

Mahanagar Telephone Nigam (MTE Quote - Cramer on MTE - Stock Picks), a telecommunications service provider in India, announced it plans to offer TV channels on mobile phones starting next month. "We have tied up with a technology partner, who is carrying out the field trials. We would provide 21 channels," said executive director J Gopal. American depositary shares of MTE, which trade on the NYSE, finished down 1% to $5.07.

Indian information technology service provider Patni Computer Systems (PTI Quote - Cramer on PTI - Stock Picks) announced it will partner with global mobility company Schindler for the development, enhancement and testing services of Schindler's double-deck elevator. The company said it will use its laboratory in Mumbai to create algorithms and to conduct simulations of the elevator lifts. Shares of Patni fell 2.2% to $12.65.

Indian banking giant Icici Bank (IBN Quote - Cramer on IBN - Stock Picks) is looking to get government approval for a foreign equity infusion into the company's investment banking arm Icici Securities, according to hindu.com. According to sources close to the situation, the Foreign Investment Promotion Board (FIPB) may consider the proposal at a meeting on Friday. Icici Bank plans to sell a 15% stake in Icici Securities and will list the shares on the stock exchange in six months. Shares of Icici fell 2.7% to $43.06.

One of the few noticeable gainers in the Indian ADR complex Thursday was Sterlite Industries (SLT Quote - Cramer on SLT - Stock Picks), which rose 1.9% to $20.93.

Be sure to check out the Far East Portfolio at Stockpickr.com every night to find out which stocks in India and China are making big moves and announcing major news.

China Recap

Stocks in China traded mixed Thursday with shares in Hong Kong dropping for the second straight day and shares in mainland China advancing off bargain-hunting. Dealers said market players in Hong Kong are worried that new U.S. disclosure requirements for financial companies could show more subprime losses for banks in the region.

"I wouldn't call this a trading consolidation because it's been too volatile," said Ben Collett, head of hedge fund trading at Daiwa Securities SMBC.

The Shanghai Composite Index climbed 77.69 points, or 2.2%, at 3,656.84, and Hong Kong's Hang Seng Index closed down 160.42 points, or 0.6%, at 25,449.79.

Mindray Medical International (MR Quote - Cramer on MR - Stock Picks), a manufacturer and marketer of medical devices in China, soared 11% higher after the company reported more than 40% growth in sales for the fourth consecutive quarter. The company said first-quarter net revenue surged 48.2% to RMB626.0 million (US$89.3 million), vs. RMB422.2 million from the previous year. Net revenue from international markets in the first quarter jumped 49.4% and net revenue in China surged 46.9%. Mindray expects full-year 2008 net revenue to come in between the range of $560 million to $580 million, vs. Wall Street estimates of $454.88 million. American depositary shares of Mindray popped $4.15 to $39.55.

Susquehanna raised its price target for Chinese private educational services company New Oriental Education & Technology (EDU Quote - Cramer on EDU - Stock Picks) to $85 from $77 and reiterated its positive rating on the shares, citing new revenue streams from the company's all-subject training. Shares of EDU rose 1.8% to $75.04.

Chinese digital media network operator AirMedia Group (AMCN Quote - Cramer on AMCN - Stock Picks) fell 6.6% after the company issued disappointing second-quarter revenue guidance. AirMedia announced its first-quarter net profit soared 289% year-over-year to $8.5 million and first-quarter revenues jumped 162% to $21.6 million, vs. $8.2 million from the previous year, due to strong results across all business segments. Revenues from digital frames in airports for the first-quarter surged 431% year-over-year to $6.7 million. The company forecasted total revenues for the second-quarter to come in between the range of $26 million to $28 million, vs. Wall Street estimates of $26.4 million. Shares of AMCN lost $1.35 to $18.90 on seven times average daily volume.

The Chinese telecom sector was in play Thursday after German rival Deutsche Telekom (DT Quote - Cramer on DT - Stock Picks) reported a 33% rise in first-quarter profits. China Unicom (CHU Quote - Cramer on CHU - Stock Picks) traded up 6.8% to $21.79; China Telecom (CHA Quote - Cramer on CHA - Stock Picks) added 5.5% to $71.47; China Netcom Group (CN Quote - Cramer on CN - Stock Picks) rose 3.3% to $65.28; and China Mobile (CHL Quote - Cramer on CHL - Stock Picks) finished up 2% to $84.87.

Be sure to check out the Far East Portfolio at Stockpickr.com every night to find out which stocks in India and China are making big moves and announcing major news.

For more on Asia, check out Daniel Harrison's coverage at TheStreet.com.