ADRs in Focus: Asian solar ADRs slip with broader index

NEW YORK—Shares of U.S.-traded Asian solar companies fell with the broader Asian ADR market on Monday, as an analyst said the rally among Chinese and Taiwanese solar stocks is losing steam.

The Bank of New York Asia ADR Index lost 0.24 points to 166.93.

Late Sunday, Citi Investment Research analyst Jim Liang said in a client note that Chinese and Taiwanese solar stocks have rallied sharply in recently, gaining 60 to 80 percent since mid-March after declining by nearly as much from the fourth quarter of 2007.

"We admittedly, like many clients we talk to, are surprised by the velocity and magnitude of the recovery," Liang wrote.

Liang cautioned that the rally may be coming to an end as the stocks reach a fair price, and recommended investors become more selective in buying shares of solar companies.

He called China's Suntech Power Holdings Co. Ltd. a "top pick" and reiterated his "Buy" rating on the company, saying he was optimistic it would benefit as polysilicon prices fall due to higher supply.

However, ADRs of Suntech lost $1.60, or 3.7 percent, to $41.70.

Meanwhile, the analyst reiterated his "Hold" rating on Yingli Green Energy Holding Co., which shed 96 cents, or 4.4 percent, to $20.82.

Trina Solar Ltd. fell 29 cents to $40.90. JA Solar Holdings Co. Ltd. was off 44 cents, or 2 percent, to $21.49. China Sunergy Co. Ltd. fell 2 cents to $8.96.

The broader ADR market finished higher Monday. The Bank of New York Composite ADR Index gained 0.28 points to 185.31.

ADRs, or American Depositary Receipts, are securities of foreign companies that trade on U.S. markets.