Wednesday's Asia ADR Recap: Ctrip.com
Updated from 5:41 p.m. EDT
Indian stocks finished flat Wednesday following weak global cues and record crude oil prices. The Bombay Stock Exchange's Sensex Index fell 34 points, or 0.2%, to 17,339.31
Indian government official have written to the futures exchanges and asked them to ban trading in soybean oil and three other commodities, in an attempt to tame inflation. Trading in rubber, potatoes and gram will also be suspended, according to
Bloomberg
.
Shares of
Cognizant Technology Solutions
(CTSH) - Get Report
, an information technology service provider, dove 10.4% after the company forecasted second-quarter profits below Wall Street estimates. First-quarter profits jumped 35% to 38 cents a share, vs. estimates of 33 cents a share, but the company said second-quarter profits will be in the range of 35 cents to 35 cents a share, vs. estimates of 36 cents a share. Total revenue rose 40% to $643.1 million, vs. estimates of $642.9 million, and the company forecasted revenue of roughly $680 million vs. estimates of $707.3 million.
Citigroup analyst Ashwin Shirvaikar removed Cognizant from his global tech conviction list, but kept his buying rating on the shares. Shares of Cognizant dropped $3.54 to $30.21.
The weaker-than-expected forecast from Cognizant inspired traders to sell off the broader Indian technology sector.
Satyam Computer
( SAY) dove 6.3% to $25.54;
Wipro
(WIT) - Get Report
lost 5.8% to $12.87;
Infosys Technologies
(INFY) - Get Report
shed 5.5% to $43.24;
Syntel
(SYNT) - Get Report
declined 5.5% to $31.46; and
WNS
(WNS) - Get Report
traded down 2.8% to $17.89.
According to an official in the Department of Telecom, the Indian government is considering selling its 26% stake in
Tata Communications
( TCL). American depsoitary shares of TCL, which trade on the
NYSE
, fell 4.2% to $23.84.
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
Chinese stocks fell sharply Wednesday amid concerns that the People's Bank of China will raise interest rates next week. Dealers said the Asian markets lack a major catalyst to take shares higher after the recent big runs. The perception among traders is that the upside is capped in the near term, so they will continue to book profits.
"We've kind of run out of steam," said Andrew Clarke, a sales trader with Societe Generale in Hong Kong.
The Shanghai Composite Index lost 154.36 points, or 4.1%, to 3,579.15, and Hong Kong's Hang Seng Index fell 651.92 points, or 2.5%, to 25,610.21.
Piper Jaffray analyst Aaron Kessler downgraded Chinese travel service provider
Ctrip.com International
(CTRP) - Get Report
from buy to neutral with a $68 price target, citing valuation. Kessler said he expects the company to barely beat estimates when it reports first-quarter earnings May 14. American depositary shares of Ctrip.com, which trade on the
Nasdaq
, traded down 4% to $64.12.
Suntech Power
(STP)
, a Chinese alternative energy company, announced it has inked a deal with
Hanau Energies SAS
to supply a 4.5MW building integrated PV systems (BIPV) to a farm located in Alsace, France. The project will be one of the largest BIPV solar systems ever built and will use Suntech's "Just Roof" modules. Shares of Suntech lost 1.3% to $43.69.
Shenzhen-based provider of interactive education content
Noah Education
(NED)
announced that its chief financial officer Trevor Choi will be leaving the company for personal reasons, effective May 31. Dora Li, Noah's financial controller, will take over as CFO during the interim. Shares of Noah slipped 6.9% to $6.33.
Nippon Oil
, Japan's largest refiner, announced it has agreed to a joint refining venture with China's
PetroChina
(PTR) - Get Report
. Under the terms of the deal, Nippon Oil will run the Osaka plant and PetroChina will manage the purchase of crude oil and sales of refined products. Shares of PetroChina dropped 7% to $145.
Among Chinese ADR losers Wednesday were
China Eastern Airlines
(CEA) - Get Report
, which fell 10% to $44.16;
Sohu.com
(SOHU) - Get Report
, which lost 10% to $71.52;
China Finance Online
(JRJC) - Get Report
, which dropped 9.8% to $21.50; and
Canadian Solar
(CSIQ) - Get Report
, which traded down 9.7% to $28.29.
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.