ADR REPORT: Shares Climb As European Worries Ease

15th Jun 2010 22:14

By Victoria Finkle Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--International companies trading in New York closed higher Tuesday, capping a daylong rally fueled by more confidence in Europe's economy and a report of strong computer sales. The Bank of New York index of ADRs rose 3% to 121.12. Electronics chain Best Buy Co. (BBY) said in its fiscal first-quarter earnings announcement that it saw strength in notebook PC sales, an area of high profit margins for computer makers. The comments raised hopes for the sector as a whole. European chip makers broadly traded higher, with Switzerland-based STMicroelectronics NV (STM, STM.MI) up 4% to $8.92 and Dutch ASM International NV (ASMI, ASM.AE) up 4.5% to $22.80. Chinese solar stocks surged, with analysts citing optimism ahead of President Barack Obama's Oval Office address later Tuesday. JA Solar Holdings Co. (JASO) soared 9.4% to $5.13, Yingli Green Energy Holding Co. (YGE) rose 5.7% to $10.81, and LDK Solar Co. (LDK) rose 6.2% to $6.01. The European index jumped 3.4% to 109.46. Shares of BP PLC (BP, BP.LN) turned higher in the U.S. after the oil giant said it has approved initial payments toward 90% of commercial large loss claims that have been filed as a result of financial impacts from the Deepwater Horizon explosion and resulting spill. Investors saw the acceleration of the claims processing as a positive indication that BP is working to appease the U.S. government, which the market is hoping will ultimately help mitigate the harshness of the Obama administration's demands on the oil giant. The stock closed up 2.4% at $31.40. Global media company News Corp. (NWS, NWSA) bid $11.5 billion for the shares it doesn't already own in U.K. satellite television provider British Sky Broadcasting Group PLC (BSY, BSY.LN). BSkyB rejected the offer but entered into negotiations. News Corp. owns Dow Jones & Co., the publisher of this newswire. British Sky shares rose 17% to $41.25. Spain's Banco Santander SA (STD, SAN.MC) was the sole final bidder for Royal Bank of Scotland Group PLC's (RBS, RBS.LN) 318 U.K. branches and is likely to enter into exclusive talks with the U.K. bank in the next few days, a person familiar with the situation told Dow Jones. Banco Santander shares jumped 7.1% to $11.19, and Royal Bank of Scotland shares climbed 6.3% to $13.32. The Latin-American index climbed 2.7% to 359.60. Telefonica SA (TEF, TEF.MC) Tuesday proposed that Portugal Telecom SGPS SA (PT, PTC.LB) pay out an extraordinary dividend of EUR1 a share or more if the Portuguese company's shareholders agree to sell the firm's stake in Vivo Participacoes SA (VIV, VIVO4.BR). Telefonica recently made a EUR6.5 billion bid for Portugal Telecom's stake in Brazilian mobile company Vivo. Both Telefonica and PT control Vivo through a 50-50 joint venture in the investment vehicle Brasilcel, which controls 60% of Vivo. Telefonica shares jumped 4.3% to $60.58, Portugal Telecom rose 2.7% to $10.78, and Vivo shares closed up 2.4% to $29.80. The board of Brazilian fuel and petrochemicals company Ultrapar Participacoes SA (UGP, UGPA4.BR) authorized the company to obtain financing worth 900 million Brazilian reais ($500 million) from state-run bank Banco do Brasil (BDORY, BBAS3.BR), the company said late Monday in a statement. Ultrapar rose 2.1% to $47.73, and Banco do Brasil edged up 10 cents to $15.40. The Asian index closed up 2.5% to 121.18. Auto stocks helped stave off late profit-taking after Macquarie Securities upgraded Japanese auto maker Nissan Motor Co. (NSANY, 7201.TO) to outperform from neutral, citing near-term risks to the China car market as exaggerated, and the resulting pricing in of a substantial shortfall to consensus earnings forecasts. Nissan shares rose 6.8% to $15.10. Other auto makers climbing during a broader market rally included Honda Motor Co. (HMC, 7267.TO) up 2.6% to $30.42, and Toyota Motor Corp. (TM, 7203.TO) up 2.8% to $73.04. Tata Communications Ltd. (TCL, 500483.BY), India's largest auto maker by revenue, Tuesday said its global vehicle sales in May rose 50% from a year earlier to 79,819 vehicles. Shares of Tata rose 2.1% to $17.64. The emerging-markets index finished 2.8% higher at 297.64. Russia's largest telecommunications company Mobile TeleSystems (MBT, MTSS.RS), or MTS, plans to launch a 10-year, dollar-denominated benchmark bond via lead managers Bank of America Merrill Lynch, Credit Suisse Group and Royal Bank of Scotland PLC, a person familiar with the matter said. Shares rose 4.7% to $20.24. -By Victoria Finkle, Dow Jones Newswires; 212-416-3418; [email protected] (END) Dow Jones Newswires June 15, 2010 17:14 ET (21:14 GMT)