Tuesday's Asia ADR Recap: Focus Media
06/10/08 - 05:07 PM EDT
Stockpickr Staff
"The problem is the outlook is still quite gloomy, because of high inflation and risk of recession, [and] is hurting all the equity markets in Asia," said Frances Lun, an analyst at Fulbright Securities.
The Shanghai Composite Index dove 257 points, or 7.73%, to 3,072.33, the largest single-day percentage loss in over a year. Hong Kong's Hang Seng Index fell 1,026 points, or 3.97%, to 23,433.65. Here's a look at how some China-based American depositary shares traded in the U.S. on Tuesday. Goldman Sachs Group reiterated its buying rating and $58 price target on Chinese out-of-home advertising network operator Focus Media(FMCN Quote - Cramer on FMCN - Stock Picks). The firm believes that shares are undervalued after investors reduced Focus Media's market capitalization by around $1 billion, after the company cut revenue guidance by $40 million due to negative impacts from last month's Sichuan earthquake. Goldman analyst Mitchell Haol spoke to Focus management, and the firm thinks that the second quarter could be the first of several quarters of substantial free cash flow generation. American depositary shares of Focus Media, which trade on the Nasdaq, jumped 1.7% to $30.54. Broadpoint Capital started coverage on Chinese alternative energy company JA Solar(JASO Quote - Cramer on JASO - Stock Picks) with a buy rating and a $30 price target. The firm said that JA Solar's low-cost polysilicon position will be the differentiator as the industry supply chain rationalizes. Shares of JA Solar fell 3% to $18.79. WuXi PharmaTech(WX Quote - Cramer on WX - Stock Picks), a Chinese pharmaceutical, biotechnology and medical device research and development outsourcing company, announced it has inked a new three-year collaboration agreement with London-based drug maker AstraZeneca(AZN Quote - Cramer on AZN - Stock Picks) to expand their relationship in developing high-quality synthesized chemical compounds for new drugs. Shares of WuXi dropped 4.8% to $18.41.
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