Emerging Market ADRs: Winners and Losers

NEW YORK (TheStreet) -- The Irish debt crisis and China's decision to increase banks' reserve ratio requirements saw global markets trading either flat or lower last week. The Dow Jones and the S&P 500 were relatively flat, with gains of 0.09% and 0.04%, respectively. Among emerging markets, the Shanghai Composite Index was the major loser, down 4.3%. India's Nifty shed 1.4%, while Brazil's Bovespa edged 0.4% lower.

China: Winners and Losers

Top gainer China Shenghuo Pharmaceutical Holdings (Shenghuo) ( KUN), advanced 29.8% last week. For the third quarter, the company posted a net income of $787, 657, as compared to a net loss of $31,924 recorded in the year-ago quarter. China Medical Technologies ( CMED) accumulated 17.5% during the week. The company reported that its second-quarter net loss narrowed almost 94.1%, as compared to the same quarter a year ago due to a revenue growth of 21.5% to $30.2 million. For the third quarter, the company estimates its revenue at $32.9 million.

Telestone Technologies ( TSTC) gained 17.1% after the company reported a 128.2% increase in third-quarter revenue to $43.1 million from the year-ago quarter. In addition, net income jumped by a staggering 184% for the same period. China Infrastructure Investment ( CIIC) accumulated 13.7% last week.

Meanwhile, China Digital TV Holding ( STV) jumped 11% after the company reported a 74.5% increase in third-quarter net revenue to $21.1 million, as compared to the 2009 third quarter. Net income rose 103.5% for the same period. For the fourth quarter, the company estimates net revenue in a range of $20.8 million to $21.79 million, ahead of the estimates forecast by Reuters' analysts.

The9 ( NCTY) increased 10.6% after the company announced plans to introduce foreign games in China and promised to share profits with domestic mobile game developers in order to stimulate their enthusiasm and to erase their concerns about revenues.

China Nepstar Chain Drugstore ( NPD) topped the losers' list, slumping 28.3% after the company reported a 73% decline in its third-quarter net income to $1.6 million, as compared to the third quarter of 2009. Subsequently, Roth Capital Partners downgraded the stock to neutral from buy. Xinhua Sports & Entertainment ( XSEL) fell 22.3% last week.

Harbin Electric ( HRBN) and HSW International ( HSWI) lost 16.5% and 16.3%, respectively.

Perfect World ( PWRI) declined 16.3% after the company announced a disappointing fourth-quarter revenue outlook in the range of $87.4 million to $90.9 million, as compared to Reuters' analysts' estimates of $94.8 million. Moreover, the range is lower than the $98.4 million revenue recorded during the third quarter of 2010.

India: Winners and Losers

Tata Motors ( TTM) emerged top gainer last week, up 5.4%. The company reported an 18% increase in global vehicle sales during October, as compared to the same month a year ago. Overall, Jaguar Land Rover operations rose 12%, with Jaguar declining 19% and Land Rover growing 22%. iGATE ( IGTE) was second in the gainers' list, increasing 3.7%.

Cognizant Technology Solutions ( CTSH) advanced 3.2% at the end of last week. For the fourth quarter, the company expects revenue to come in at $1.27 billion, as compared to $1.21 billion during the third quarter. For the full year, net income is seen at $4.55 billion, or $2.35 per share, up 38.8% from 2009 levels.

Among the major losers, Wipro ( WIT) fell 6.5% last week. Through its subsidiary InfoCrsossing, Wipro is planning to set up a new data center in North Carolina, in order to support its growing business, including cloud computing services.

Syntel ( SYNT) dipped 5.1%. The company recently finalized its secondary public offering by announcing the price offer for the 2.61 million shares, held by the company's founder and chairman. The public offering is $47.5 per share, and the proceeds will be completely transferred to the seller and not the company.

ICICI Bank ( IBN) and Mahanagar Telephone Nigam ( MTE) slipped 4.5% and 4.3%, respectively past week.

Brazil: Winners and Losers

TAM ( TAM), engaged in providing scheduled air transportation through its operating subsidiaries, was the top gainer, up 6.2% in the past week. For the third quarter, the company recorded a 31.6% increase to $170.7 million in adjusted net income, while adjusted revenue escalated 23.4% to $1.65 billion. A substantial increase in airfare increased net income, while passenger and cargo revenues led revenue growth.

Companhia Brasileira De Distribuicao ( CBD), a Brazil-based food retailer, rose 5% last week. Additionally, Braskem ( BAK), a petrochemical company, accumulated 4.6%. The company recently entered into a strategic partnership with Ineos Technologies, a petrochemical technology developer, to acquire licenses for Innovene S slurry and Innovene G gas-phase technologies for producing high-density PE and linear low-density PE in its future petrochemical projects. Besides, Braskem would also conduct joint research and development programs for the same technologies.

The other gainers were Copel ( ELP) and AmBev ( ABV), up 4.6% and 4.2%, respectively.

Among major losers, Gerdau ( GGB), producer of long-rolled steel, recorded the highest decline of 3.1% last week. Diversified national homebuilder Gafisa ( GFA) narrowed 2.5%, after posting an 83% jump in third-quarter net profit, surging 140% in the total number of launches of projects or phases. However, looking ahead into fiscal 2010, the company's net income narrowed. Vivo Participacoes ( VIV) fell 1.2% during last week.

Among others, Companhia Siderurgica Nacional ( SID), a leading Brazilian steel maker, dipped 1.2% after Zacks Investment Research downgraded the stock's rating to underperform from neutral, after the company posted weak quarterly results. The research firm believes that rising manufacturing costs and mounting debt levels could hamper the company's future growth.

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