Emerging Market ADRs: Winners and Losers

NEW YORK (Karvy) -- Here's a list of last week's emerging-markets winners and losers.

China: Winners and Losers

China Shenghuo Pharmaceutical Holdings ( KUN) was one of the top gainers last week with an increase of 32.1%. Following was Fuwei Films ( FFHL) and China Shen Zhou Mining & Resources ( SHZ) gaining 24.7% and 20%, respectively.

China-Biotics ( CHBT) was up 13.4% during the week. Recently, the company announced that it has signed 14 new customers for its bulk additives probiotics products. As of the end of November, the total bulk customers increased to 51. About 60% of the newly signed customers are located in tier one cities such as Beijing and Tianjin.

Agriculture stocks Origin Agritech ( SEED) and AgFeed ( FEED) were up 9.8% and 7.5%, respectively. Also, China Green Agriculture ( CGA) escalated 5.5%.

Yanzhou Coal Mining ( YZC) jumped 3.3%. Templeton Asset Management, a subsidiary of Franklin Resources ( BEN), increased its shareholding in Yanzhou to 12.05% from the earlier 11.94%. The coal company experienced a more than 100% return in its net profit in the latest quarter mainly due to coal sales volume and coal prices.

Xinhua Sports & Entertainment ( XSEL) topped the losers' list, plummeting 19.6%. For the first half ended Sept. 30, the company announced that it suffered a $300,000 net loss. Also, gross profits were down 44% year over year to $3.9 million while Ebitda slumped 87%.

Zhongpin ( HOGS) lost 10.5%. However, Global Hunter Securities recently upgraded the stock from neutral to accumulate with a $24 target price based on positive trends in pork prices and significant capex plans adopted by the company. Zhongpin recently revealed that it would build a new production, research and development, test, and training complex in Henan province which would add 100,000 metric tons of capacity for prepared pork products.

Solar companies LDK Solar ( LDK) and JA Solar Holdings ( JASO) tumbled 10.1% and 9.8%, respectively. Also, Canadian Solar ( CSIQ) was down 5.7%.

Credit Suisse downgraded the outlook for solar sector in November based on industry wide oversupply, and concerns about weaker demand in 2011. In addition, LDK commented that although 2010 has proved to be an excellent year for the solar stocks there is a lot of uncertainty prevailing in the future. Concerns like U.S. complaints of China subsidizing solar and declines in government subsidy support from European nations such as Germany and France are raising fears among solar investors.

Internet firms Sohu.com ( SOHU) and Baidu.com ( BIDU) dropped 6.3% and 1.7%, respectively.

India: Winners and Losers

Sify Technologies ( SIFY) emerged as the top gainer with an increase of 7.8%. Recently, the company regained compliance with Nasdaq-listing rules after it filed its annual report for the year ended in March. Meanwhile, Nokia ( NOK) has tied up with Sify for deploying mobile order management service for small and medium businesses. This would address the needs of small business units and also provide a dependable platform for businesses to migrate towards business mobility in a cost-effective way.

iGATE ( IGTE) ranked second in the advancers' list, accumulating 5.3% last week. On Friday, research analysts at Morgan Stanley upgraded the stock rating to buy from neutral with a price target of $27. Currently, the stock is trading at $21.

Infosys ( INFY) advanced 1.4% during the week. Recently, the company revealed that Finacle, an Infosys banking solutions product, contributing 4% to 5% of revenue, now reaches out to almost 5% of the world's total population. The company says that mobile banking operators could earn almost $8 billion in revenue just by expanding their services to the currently unbanked by 2012.

In a separate development, the company CEO said that Infosys is attempting to expand footprints across India. The company plans to spend 10% of revenue on acquisitions.

Among the major losers, HDFC Bank ( HDB) dropped 11%. Last week, the bank raised deposit and lending rates by 75 basis points making loans more expensive. Moreover, it also hiked its benchmark prime lending rate by 25 basis points to 16.5% per annum. Recently, the bank partnered with Diebold ( DBD) in order to upgrade its existing network of ATMs.

Tata Motors ( TTM) declined 6.7%. Recently, the company provided a four-year manufacturers warranty on its Tata Nano car with no additional cost charged to the consumers. Meanwhile, the car auto manufacturer said that it has put a halt on price rises for its commercial vehicles despite continuous increases in input costs. On the other hand, global car manufacturers may increase car prices starting in January.

Among others, Mahanagar Telephone Nigam ( MTE) and Tata Communications ( TCL) declined 6.6% and 4.5%, respectively.

Brazil: Winners and Losers

Gerdau ( GGB), producer of long rolled steel, was the top gainer, up 8.8% last week on investor optimism regarding the tax cuts. Vivo Participacoes ( VIV) rose 2.5%.

Companhia Siderurgica Nacional ( SID) was up 2.5%. The steelmaker recently revealed that it signed a memorandum of understanding with Spanish-based Alfonso Gallardo Group for the negotiation and eventual acquisition of stakes in three Spanish companies, namely cement maker Cementos Balboa (Balboa), and steel producers Corrugados Azpeitia (Azpeitia) and Corrugados Lasao (Lasao). These transactions valued at about $472.7 million are likely to be concluded in first quarter of 2011.

Companhia de Saneamento Basico do Estado de Sao Paulo-SABESP ( SBS) increased 1.8% during the past week. The company last week launched a $350 million, 10-year bond issue with a yield of 6.25%.

Among others, Vale ( VALE) was up 1.1%.

Leading the losers' list was Gol Linhas Aereas Inteligentes ( GOL), a low-cost airline, which shed 7.8% last week despite a 2.9% year-over-year increase in domestic passenger traffic for November and a 27.2% gain in international traffic.

Companhia Paranaense de Energia - Copel ( ELP) dropped 5.2% although the company was upgraded to neutral from the earlier underperform recommendation by Zacks Investment Research.

Centrais Eletricas Brasileiras (Eletrobras) ( EBR) and TAM ( TAM) were down 4.35 and 3.8%, respectively.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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