Tuesday's Asia ADR Recap: Suntech
Updated from 5:57 p.m. EDT
For the second day in a row Tuesday, Indian stocks couldn't hold on to gains and fell back into the red as investors sold stocks into strength.
Investor sentiment was hampered after India's largest wireless-phone company,
Bharti Airtel
, said it might have to take on more debt or dilute shares to finance a $19 billion takeover of Africa's biggest wireless-phone company,
MTN Group
.
"We have a mixed-bag sort of situation right now as investors are churning their portfolios. So there is profit-booking in some high-beta stocks, while certain neglected sectors and stocks are being bought into. Overall, I expect this range-bound situation to continue till the next fortnight," said Anand Kuchelan, a senior analyst at PINC Research.
The Bombay Stock Exchange's Sensex Index fell 117 points, or 0.7%, to 17,373.
Wipro
(WIT) - Get Report
, an Indian global information technology company, announced it plans to consolidate its nontechnology business segments like consumer care products, lightning and infrastructure engineering into a new group called the Global Program Team. The Global Program Team will focus on finding new business opportunities and will be headed by T.K. Kurien. American depositary shares of Wipro, which trade on the
NYSE
, rose 2% to $13.67.
Among other Indian technology stocks,
Infosys Technologies
(INFY) - Get Report
rose 3.2% to $45.80;
Cognizant Technology Solutions
(CTSH) - Get Report
added 1.5% to $33.75; and
Satyam Computer
(SAY)
closed higher by 1.3% at $27.26.
Vodafone Group
(VOD) - Get Report
, a U.K.-based voice and data communications service company, announced it plans to launch
Apple's
(AAPL) - Get Report
iPhone in India as well as in the Czech Republic, Italy, Egypt, Greece, Portugal, New Zealand, South Africa, Turkey and Australia. Shares of Vodafone fell 0.4% to $31.95, while shares of Apple rose 1% to $186.66.
In the Indian financial sector,
HDFC Bank
(HDB) - Get Report
announced it will offer customers a full range of free banking services for their mobile phones. These services, which will include fund transfers, accessing bank accounts, shopping and buying mutual funds, will be accessible through ngpay, a mobile commerce network from Bangalore-based
JiGrahak Mobility Solution
. Shares of HDFC fell 0.5% to $116.27
Be sure to check out the
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, with shares in Hong Kong advancing due to buying in blue chips and shares in mainland China falling as investors continue to fear rising inflation. Traders said record crude oil prices added to inflation worries and institutional investors are hesitant to take large positions in front of next week's report on inflation data for April.
Dealers said investor sentiment was hurt after speculation made the rounds that the Chinese government plans to hike interest rates to control inflation and avoid an overheating economy. The Shanghai Composite Index lost 27.51 points, or 0.7%, to 3,733.50 and Hong Kong's Hang Seng Index added 78.18 points, or 0.3%, to 26,262.13.
"Asian markets may remain volatile until the U.S. financial conditions and credit-related stress alleviate. Moreover, inflationary risk is still on the upside and global growth is starting to slow modestly," said a Merrill Lynch analyst in a note to clients.
Merrill Lynch also cut its year-end target for Hong Kong's Hang Seng Index to 28,000 from 30,000, citing valuation.
Jesup & Lamont started coverage on Chinese alternative energy company
Suntech Power
(STP)
with a buy rating and $64 price target. The firm said Suntech is the clear leader in the Chinese solar group and deserves a premium valuation. American depositary shares of Suntech jumped 6.2% to $44.30.
The entire Chinese solar sector was red hot Tuesday after crude oil prices hit a new record high and Goldman Sachs said a "super-spike" could take oil to over $200 within the next two years.
Canadian Solar
(CSIQ) - Get Report
soared 18% to $31.36;
JA Solar
(JASO)
jumped 10% to $23.48;
Yingli Green Energy
(YGE)
surged 10% to $23.02;
Solarfun Power
(SOLF)
traded up 10% to $14.69; and
Trina Solar
(TSL)
closed up 6.9% at $43.76.
According to
Bloomberg
,
(GOOG) - Get Report
plans to release an online dictionary that will translate Chinese into other languages to help the search giant compete with Chinese rival
Baidu.com
(BIDU) - Get Report
. Shares of Baidu finished down 1% at $370.42.
Simcere Pharmaceutical Group
(SCR)
, a Chinese manufacturer and supplier of branded generic drugs, announced its first-quarter profits soared 68% after sales of its anti-cancer drug jumped 64% and sales of its anti-stroke drug rose 89%. The company reported net income of $16 million, or 25 cents a share, vs. $8.7 million, or 17 cents a share, from a year earlier. Revenue jumped 26% to $56.3 million, vs. $40.4 million in the first quarter of 2007. Shares of Simcere finished up 1.4% at $13.70.
In the Chinese oil and gas sector, Goldman Sachs downgraded shares of
PetroChina
(PTR) - Get Report
by removing the stock from its Asia Pacific Buy List and placing it on the Asia Pacific Sell List. PetroChina also announced it's in talks with a Venezuelan partner to build a refinery in China's southern province of Guangdong. Shares of PTR finished essentially flat at $156.73.
Elsewhere in the Chinese oil and gas complex,
Cnooc
(CEO) - Get Report
and Taiwan-based
CPC Corp.
are reportedly set to launch a joint exploration in the Taiwan Strait, according to the
Economic Daily News
. Shares of Cnooc traded up 4.6% to $183.47.
China Petroleum & Chemical
(SNP) - Get Report
, a Chinese energy and chemical company, was hit with a downgrade from S&P Equity Research from hold to sell, citing earnings risks from high oil prices. Despite the downgrade, S&P raised its 12-month price target to $108 from $96. Shares of SNP were little changed at $110.37.
Be sure to check out the
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
.
Stockpickr is a wholly owned subsidiary of TheStreet.com.