Emerging Markets ADRs: Winners and Losers

NEW YORK (TheStreet) -- India's Nifty gained 1.5% last week, while Brazil's Bovespa and the Shanghai Composite Index lost 2.5% and 0.2%, respectively. Meanwhile, the Dow Jones rose 1.2%, while the S&P 500 edged 0.03% lower.

China: Winners and Losers

New Dragon Asia ( NWD) emerged as the top gainer last week, up 70.6%. China Metro Rural Holdings ( CNR) and China Shenghuo Pharmaceutical Holdings (Shenghuo) ( KUN) followed, increasing 43.3% and 17.7%, respectively.

China Unicom (Hong Kong) ( CHU) rose 7% last week after its 3G users topped 14.06 million, as of Dec. 31, 2010. Users grew 15% from the earlier month, surpassing the company's own set target of 10 million users. Meanwhile, LDK Solar ( LDK) advanced 6.8% after the company raised its guidance for the fourth quarter on the optimism of a brighter outlook for the solar industry.

Yingli Green Energy Holdings ( YGE) gained 6.7%. The company recently announced becoming the official premium partner of FC Bayern Munchen, one of the most successful and popular football clubs in the world. China Nepstar Chain Drugstore ( NPD) rose 4.5% after announcing a special cash dividend of 30 cents per ADR, representing a total value of $31 million payable on Feb. 28, 2011.

China Telecom ( CHA) rose 3.5%, buoyed by a 34.43 million increase in CDMA users to 90.52 million during 2010. In 2011, China Telecom will provide more subsidies for 3G smart phones and plans to launch a marketing partnership with mobile phone manufacturers.

China Shen Zhou Mining & Resources ( SHZ) headed the losers' list, dropping 28.5%. AgFeed ( FEED) fell 19.4% as inflation fears gripped China's markets.

China Southern Airlines ( ZNH) slipped 13.5% on the concern that the industry's earnings growth will be affected as snowstorms spur flight cancelations.

Among other losers, Agria ( GRO), Origin Agritech ( SEED) and China Precision Steel ( CPSL) plummeted 12.6%, 11.7% and 10%, respectively.

India: Winners and Losers

Sify Technologies ( SIFY) emerged as a major gainer last week, after posting a 76% increase in its third-quarter EBITDA, to $2.1 million, on a total operating revenue of $38.72 million. Meanwhile, the company's hosting business grew 26.4% during the quarter, compared to the year-ago quarter. Rediff.com ( REDF) followed, up 11%. Rediff is scheduled to report its third-quarter financial results ending Dec. 31, 2010 on Jan. 25, 2011.

Patni Computer Systems ( PTI) gained 2.4%. Last week, UBS Securities said it is positive on Patni, a mid-cap information technology company, considering that in 2011, investors will likely shift focus from large-cap IT companies to mid caps. Finally, ICICI Bank ( IBN) edged up by a marginal 0.8%. Edelweiss Capital believes that investors should stay invested in private sector banks like ICICI for longer-term benefits.

WNS Holdings ( WNS) was a major loser last week, slumping 9.1% after research analysts at Credit Suisse downgraded the stock to "neutral" from "outperform". Moreover, JP Morgan maintained its "underweight" rating on the stock on estimated below-industry average revenue growth during 2011. Meanwhile, the company has lowered its revenue guidance for 2011 to $367 million from the earlier $363 million to $378 million.

Wipro Technologies ( WIT) continued its downtrend, losing 6.1%. Last week, the company's third-quarter revenue missed the consensus estimate of 47 analysts polled by Bloomberg. However, the company's profit increased 10%, in line with the forecast. Sterlite Industries ( SLT) dropped 5.3%. Analysts at Zacks Investment Research downgraded the stock to "neutral" from "outperform" last week.

Tata Motors ( TTM) dipped 5.1%, notwithstanding a 19% growth in December global vehicle wholesales. Mahanagar Telephone Nigam ( MTE) fell 4.1%.

Brazil: Winners and Losers

Embraer ( ERJ) continued its winning streak for the second consecutive week to top the advancers' list, gaining 8.1%. Last week, RBC Capital raised its price target on the stock to $35 from the earlier $30, assigning a "sector perform" rating. Braskem ( BAK) followed, on an unusually huge trading volume increase, up 3.1%. TIM Participacoes ( TSU) gained 2.4%. Last week, Brazil's telecom regulator Anatel revealed that Brazil's mobile phone subscriptions were up 16.7% in 2010, compared to 2009, with Tim garnering a 25.1% market share to occupy the third spot (in terms of market share). The first spot is occupied by Vivo Participacoes, the second by America Movil SAB de CV, which both trade on the NYSE.

Another cellular telecom service provider, Vivo Participacoes ( VIV), increased 1.5% during the past week. For the year-ended 2010, the telecom provider was ranked first, with a market share of 29.7%. Joining the rallying telecom stocks on news of growing mobile phone subscriptions in Brazil during 2010, Tele Norte Leste Participacoes ( TNE) edged up 1.1% last week.

Topping the losers' list last week was Net Servicos de Comunicacao ( NETC), down 12.8%. Companhia de Saneamento Basico do Estado de Sao Paulo (SABESP) ( SBS) plummeted 9.7%. However, SABESP said last week it is using recycled material to build an $18.3 million water supply system in Osasco city, which has reduced construction costs by almost half.

Companhia Energetica Minas Gerais (CEMIG) ( CIG) dipped 8.4%. Companhia de Bebidas das Americas (AmBev) ( ABV) continued to lose for the second consecutive week, dropping 7.4%. Last week, Goldman Sachs downgraded the stock to "neutral" from "buy," stating that the company may miss its fourth-quarter earnings estimates due to bad weather pressurizing volumes.

Gerdau ( GGB) declined 7.2%. The strengthening Brazilian real is affecting Brazilian manufacturers, as it render exports that are expensive for these companies.

Two major banking stocks, Itau Unibanco Holding ( ITUB) and Banco Bradesco ( BBD), shed 6.7% and 4.5%, respectively. Last week, the Brazilian central bank decided to raise interest rates to 11.25% on rising inflation concerns.

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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