US MARKETS

China’s New Oriental Education & Technology gains on ‘bull of the day’ call

Shares in China’s largest provider of private education services rise on recommendation by research firm

PUBLISHED : Friday, 30 October, 2015, 3:23am
UPDATED : Friday, 30 October, 2015, 3:24am

Shares of New Oriental Education & Technology Group, China’s largest provider of private education services, rose 3.5 per cent to US$27.80 at midday on Thursday in New York, after stock research firm Zachs Equity Research picked the stock as its “bull of the day” call.

Zachs cited New Oriental’s 32 per cent year-on-year revenue growth and 14.4 per cent rise in net profit in the three months to August 31, helped by a 150 per cent jump in paid users, and strong demand of its services despite the economic downturn.

Shares of Qunar, a Chinese travel search engine operator controlled by Baidu, rose 6.2 per cent to US46, after a brief correction on Wednesday that followed two consecutive days of strong gains on the back of its shares-swap merger with rival Ctrip.com International.

Ctrip fell 0.85 per cent to US$87.70 at midday, while Baidu, the operator of China’s biggest search engine that will own a 25 per cent voting interest in Ctrip, slid 2.2 per cent to US$168.80.

Other Chinese internet majors did not fare well either. Sina.com lost 3.4 per cent to US$46.70, while Netease slid 2.3 per cent to US$139.70.

E-commerce giant Alibaba Group Holding retreated 0.58 per cent to US$81.90, after two consecutive days of gains on the back of better-than-expected quarterly results announced on Tuesday.

Meanwhile, the Deutsche X-trackers Harvest CSI300 China A-Shares ETF gained 1.2 per cent to US35.40, after the Shanghai Composite Index ended 0.36 per cent higher on Thursday.

The iShares China Large-Cap ETF tracking Hong Kong-listed Chinese shares declined 0.95 per cent to US$38.40, after the Hang Seng Index dropped 0.6 per cent on Thursday.