Emerging Markets ADRs: Winners and Losers

NEW YORK (TheStreet) -- During the final week of 2010, emerging market stocks and major global indices traded mixed. India's Nifty gained 2.7%, while Brazilâ¿¿s Bovespa was up 1.2%. In contrast, the Shanghai Composite Index fell 1%. Both the Dow Jones and S&P 500 ended relatively flat, posting marginal gains of 0.03% and 0.07%.

China: Winners and Losers

China Shen Zhou Mining & Resources ( SHZ) zoomed 103.4%, emerging as the star performer for the week. Last week, China, the leading country of rare earth metals, announced export quota permits of 14,446 metric tons for 2011. Additionally, Beijing raised export taxes for a few rare earths by almost 25%. Chinaâ¿¿s latest policies will limit the entry of new fluoride companies in the industry, thereby supporting existing companies.

Similarly, Qiao Xing Universal Resources ( XING), a company operating in the mining and mobile telephony space gained 57.2% on the rare earth metals export quota slash. Likewise, China Direct Industries ( CDII), a provider of magnesium and basic materials, surged 20.8%. CDII has announced plans to raise $4 million through registered direct offering with a price of $1.80 per share. Meanwhile, Gushan Environmental Energy ( GU) jumped 44.5%.

Agria ( GRO) climbed 27.2% after the company along with China-based New Hope Group offered to buy a majority stake in PGG Wrightson, New Zealand's biggest rural service company. If the proposal is accepted, Agria, which currently owns a 19% stake in the company, will have a nearly 50% stake. Meanwhile, AgFeed ( FEED) soared 21.5%.

China Natural Resources ( CHNR) gained 13.1% after second quarter sales surged 91%. China Nepstar Chain Drugstore ( NPD) and Zhongpin ( HOGS) jumped 10.7% and 10.5%, respectively.

China Architectural Engineering ( CAEI) and Fuwei Films (Holdings) ( FFHL) were the biggest losers, down 75% and 23.4%, respectively.

Chindex International ( CHDX) declined 6.8% past week. The company has formed a joint venture (JV) with Shanghai-based Fosun Pharmaceutical to operate combined medical device businesses, including Chindex's Medical Products division. Chindex owns a 49% stake, while Fosun controls a 51% interest in the JV.

Major solar stocks like Solarfun Power Holdings ( SOLF), Canadian Solar ( CSIQ), and LDK Solar ( LDK) declined 4.8%, 4.5%, and 4.4%, respectively.

India: Winners and Losers

Sify Technologies ( SIFY) topped the advancers' list with gains of 10.2%. Recently, it was known that information technology (IT) vendors who derive a portion of their revenue from the government are likely to double or triple their revenues during 2011 due to the estimated e-governance deals. Rediff.com ( REDF) came second accumulating 6.7% past week, led by a spike in volumes. Sterlite Industries ( SLT) rose 3.6%.

Mahanagar Telephone Nigam ( MTE) gained 2.8% and announced its decision to finalize agreements for sharing its 3G mobile network with private service providers by early 2011. The company expects to earn around $67.2 million from the 3G roaming agreements with other telecom operators who did not succeed in the recent 3G spectrum auction.

Tata Communications ( TCL) was up 2.7%. It was known last week that UAE-based Etisalat is collaborating with eight global telecom operators to launch a high-capacity fiber optic submarine cable extending from India to Europe. Tata Communications is among the eight players.

ICICI Bank ( IBN) gained 1.9% last week. The bank has affirmed that it will be raising its base rate by 50 basis points and the benchmark prime lending rate by 25 basis points, effective Jan. 3, 2011. Meanwhile, Infosys ( INFY) scaled up 1.6%.

iGATE ( IGTE), emerged a major loser, down 3.1%. Last week, the company canceled its press conference wherein it was scheduled to announce the Patni Computers ( PTI) acquisition deal. Tata Motors ( TTM) lost 2.7%. The company recently upped the prices for its passenger and commercial vehicles on rising input costs. Prices for passenger cars were raised by 1.5%. WNS Holdings ( WNS) edged 1.9% lower.

Brazil: Winners and Losers

Petroleo Brasileiro (Petrobras) ( PBR) headed the gainers' list, accumulating 10.4%. For December, the company announced a daily average oil output of a record 2.12 million barrels, with new wells brought on stream. This would lead to record oil production in 2010, Petrobras added.

CPFL Energia ( CPL) followed, up 4.6%. Insider sources say state-controlled electricity utilities Cemig and CPFL Energia are in acquisition talks in order to expand their combined share in Brazilâ¿¿s electricity distribution market to 42% from the current 30%.

Meanwhile, Gafisa ( GFA) notched a 4.5% gain. Braskem ( BAK) rose 4.3% after it approved the incorporation of Quattor Petroquimica (Quattor) as a wholly owned subsidiary. Quattorâ¿¿s shareholders will receive Braskem shares -- one preferred class A share of Braskem for one common or preferred share of Quattor.

Centrais Eletricas Brasileiras (Eletrobras) ( EBR) increased 4.2% after Electronuclear, the companyâ¿¿s nuclear plant, received a $3.6 billion grant from the Brazilian national development bank for building Brazilâ¿¿s third nuclear reactor. While the bankâ¿¿s loan would finance 59% of total expenditure, Electronuclear intends to spend $5.6 billion towards construction. Companhia Paranaense de Energia (COPEL) ( ELP) gained 4.1% last week. The company said it is mulling a plan to build a pilot-scale biodiesel plant in 2011 in Parana state with a daily production capacity of 5,000 liters of biodiesel. The project is likely to benefit 2,500 local farmers.

In tandem with the positive market sentiment, Tele Norte Leste Participacoes ( TNE) and Ultrapar Participacoes ( UGP) advanced 4% and 3.4%, respectively.

Companhia Energetica de Minas Gerais (CEMIG) ( CIG), a utility company, rose 3.4% past week, backed by higher volumes. Banco Bradesco ( BBD) piled 3.3%. The company has announced to increase its staff by 20% in 2011, on the mounting M&A deals in capital markets.

With the Bovespa gaining 1.2% past week, there were no losers among Brazil ADRs.

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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