Emerging-Market ADRs: Winners and Losers

NEW YORK (TheStreet) -- Global market indices recovered a fraction of losses during the past week as risk appetite returned subsequent to the progress made in resolving Japan's nuclear crisis. Among emerging market indices, India's Nifty posted the highest increase of 5.5%. China's Shanghai Composite Index followed rising 2.7%. Meanwhile, Brazil's Bovespa rose 1.3%. Furthermore, the Dow Jones and the S&P 500 advanced 3.1% and 2.7%, respectively.

China: Winners and Losers

China Shen Zhou Mining & Resources ( SHZ) topped the gainers' list, rising 28.2% last week. TheStreet Ratings rate the stock a hold. Ku6 Media ( KUTV) and GigaMedia ( GIGM) followed increasing 26.9% and 25.7% last week, respectively.

Sina ( SINA) surged 17.4% at close last week. Internet portal operator Sina dropped Google's search service from its website and will now use its own search technology, diminishing Google's market presence further in the country.

Global Sources ( GSOL) advanced 15.7%. In its recently reported quarterly results, revenue increased to $62.4 million from $54.9 million while net income stood at $9.5 million, compared to $8.6 million in the year-ago period. For the first half of 2011, the company estimates revenue in the range of $102.5 million to $103.5 million, 9%-10% year-over-year increase.

Telecom stocks, Telestone Technologies ( TSTC) and Qiao Xing Mobile Communication ( QXM) were up 15.4% and 13.8%, respectively.

Baidu ( BIDU) rose 12% on reports of new product launches. The company revealed that it is planning to develop a mobile operating system and is testing web-browsing software for personal computers that will place it in direct competition with Microsoft's Internet Explorer and Google's Chrome. Further, Baidu is likely to gain after Beijing blocks Google's e-mail services.

Airline stocks China Southern Airlines ( ZNH) and China Eastern Airlines ( CEA) were up 15% and 9% during the past week, respectively. Silvercorp Metals ( SVM) gained 9.6% on rising silver prices.

New Oriental Energy & Chemical ( NOEC) headed the losers' list, down 23.8% during the past week. China Information Technology ( CNIT) slumped 15.3% after the company reaffirmed its 2011 revenue guidance in the range of $165 and $187 million and net income in the range of $42 and $45 million.

Auto Parts & Equipment stocks, China Automotive Systems ( CAAS) and Wonder Auto Technology ( WATG) fell 9.2% and 5.8% last week, respectively. Meanwhile, software stocks CDC Software ( CDCS) and Longtop Financial Technologies ( LFT) shed 9.7% and 6.2%, respectively.

India: Winners and Losers

Rediff.com ( REDF) topped the advancers' list jumping 30.6% at close last week. Tata Communications ( TCL) accumulated 12.7% after HSBC upgraded the stock to neutral from the earlier underperform.

Wipro ( WIT) reversed its earlier week's losses and rose 8.3% last week. Senior executives at top IT companies in India forecast double-digit growth rates of 18%-22% for the year ending March 2011. Meanwhile, brokerage houses estimates a growth rate of 4% to 7% for the March 2011 ending quarter.

Cognizant Technology Solutions ( CTSH) and Tata Motors ( TTM) increased 7.9% and 7.8%, respectively. Meanwhile, Tata Motors is in talks to buy a car factory from Poland-based Fabryka Samochodow Osobowych, which has an installed capacity of 150,000 cars a year and produces several car models through licensing pacts with global automakers such as GM Daewoo.

iGATE ( IGTE) closed 7.5% higher. Zacks Investment Research reaffirmed a neutral rating on the stock. Mahanagar Telephone Nigam ( MTE) and Infosys ( INFY) gained 7.3% each. Meanwhile, as inflation rate increases and wages and attrition rates of key staff rise, outsourcing contracts billing rates are likely to go up by 5%.

Banking stocks ICICI Bank ( IBN) and HDFC Bank ( HDB) advanced 6.7% and 4.4% during the past week, respectively.

Even after the Indian market gained a huge 5.5% last week, only one stock registered losses. WNS Holdings ( WNS) erased 5.4% last week.

Brazil: Winners and Losers

Telecom operators in Brazil accumulated gains above 10% during the past week. It was revealed last week that Spain-based Telefonica, largest telecom group serving Latin America, is planning to invest $14.6 billion in Brazil during the 2011 to 2014 period leveraging on the country's rising demand for telecommunications services. Meanwhile, during the period 2007 to 2010 Telefonica has invested $9.6 billion in Brazil.

Telecom operator Vivo Participacoes ( VIV) emerged the top gainer rising 11.8% during the past week. The stock advanced on takeover speculation after Deutsche Telekom agreed to sell its wireless unit to AT & T. An industry analyst commented that Tim being a focused wireless service provider, it can be a likely target among competitors offering landlines and cable.

Major telecom service provider Vivo Participacoes ( VIV) was up 10.5%, after its board of directors approved a dividend payment of $3.2 per share for 2010. The shares will be traded as ex-dividend as of April 1, 2011. Tele Norte Leste Participacoes ( TNE) and Brasil Telecom ( BTM) gained 10.1% and 7.2% at close last week, respectively.

BRF Brasil Foods ( BRFS) notched up a 7.4% gain. Zacks Investment Research recently reaffirmed its neutral rating on the stock. Meanwhile, the company announced that its 2010 profit surged by 125% and sales were up 8.3% as compared to 2009 levels. Meanwhile, during the year, the company's market capitalization was up 21%.

Energy stocks Ultrapar Participacoes ( UGP) and Petroleo Brasileiro ( PBR) rose 5.6% and 4.5%, respectively. Petrobras recently revealed an update related to its own capital interest distribution for 2010 with the fifth interim payment being $0.09 per share.

Heading the losers' list was major airline Gerdau ( GGB), declining 5.3% last week after the stock was downgraded by TheStreet Ratings from buy to hold. Net Servicos de Comunicacao ( NETC) lost 4.3%.

Embraer ( ERJ) shed 3.4% after the company provided guidance below analysts' estimates. For 2011, the company estimates net sales at $5.6 billion and EBIT at $420 million. Analysts polled by Reuters expect the company to report $5.9 billion sales on EBIT of $483 million.

Companhia Brasileira De Distribuicao ( CBD) dipped 1.4% past week. Brazilian supermarket sales recorded a decline of 7.1% in February 2011 as compared to the previous month. However, as compared to the year-ago month it was up 2.8% in real terms.

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