ADR Report: Shares Climb On Upbeat ECB Comments, China Data

10th Jun 2010 21:49

By Shara Tibken Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--International companies trading in New York broadly gained Thursday following upbeat comments from the European Central Bank and strong economic data in the U.S. and China. The Bank of New York index of ADRs rose 4.2% to 116.58. The euro strengthened against the dollar after the ECB boosted its growth forecast for this year, helping to push up interest in riskier small-cap stocks and energy stocks. Some of the top gainers included Australia's Santos Ltd. (SSLTY, STO.AU), rising 8.8% to $11.38, and Spain's Repsol YPF SA (REP, REP.MC), climbing 7% to $20.33. U.S.-listed shares of BP PLC (BP, BP.LN) shot up 12% to $32.78 Thursday, erasing some of the previous day's sharp losses as fears eased about the U.K. oil giant's ability to withstand the expense of the Gulf of Mexico oil-spill recovery. Shares of BP dropped to a 14-year low Wednesday afternoon as jittery investors dumped the stock after U.S. lawmakers increased demands that BP cover all costs related to the spill. Materials and industrials, heavily exposed to global demand prospects, also gained. Netherlands-based agriculture and construction equipment maker CNH Global NV (CNH, NHL.BE) climbed 8.6% to $24.31, and Japanese farm equipment maker Kubota Corp. (KUB, 6326.TO) grew 4.2% to $40.84. The European index gained 4.8% to 104.77. European financials participated in the broad rally, with Bank of Ireland (IRE) up 8.6% to $3.92 and Netherlands-based ING Groep NV (ING, INGA.AE) up 8.2% to $7.77. Madrid-based Banco Santander SA (STD, SAN.MC) paid $2.5 billion to buy the remaining 25% share of its Mexican subsidiary from Bank of America Corp. (BAC), a move intended to buttress weaknesses on Santander's home turf by expanding in Latin America's second-largest market. Santander shares grew 10% to $9.91. Other Spanish stocks also were strong after a successful Spanish bond auction injected a touch of optimism to the market. Banco Bilbao Vizcaya Argentaria SA (BBVA, BBVA.MC) jumped 10% to $9.90. Telefonica SA's (TEF, TEF.MC) O2 is scrapping unlimited data usage for smartphones in the U.K. following a sharp rise in consumer's surfing the web on devices, most notably Apple Inc.'s (AAPL) iPhone. O2, the U.K.'s second-biggest mobile operator, said its new mobile data pricing will give customers "a more transparent pricing model tied to usage." Shares of the Spanish company climbed 7.1% to $57.20. Meanwhile, Italy's largest telecommunications operator, Telecom Italia SPA (TI, TIT.MI, TIA), told regulators Thursday it will push ahead with its own plans to boost broadband coverage in Italy, aiming to offer ultra broadband services to 50% of the Italian population by 2018. Its shares rose 5.7% to $11.10. Other telecom companies trading higher included the U.K.'s Vodafone Group PLC (VOD, VOD.LN), up 4% to $20.62, and French telecom equipment provider Alcatel-Lucent (ALU, ALU.FR), up 8.2% to $2.64. ARM Holdings PLC (ARMH, ARM.LN) grew 5% to $12.30 as traders suggested that Apple may be preparing to make a bid for the U.K.-based chip design company. Still, many analysts were skeptical about a possible deal. The Latin-American index climbed 3.9% to 351.83. Brazil's leading cellphone operator Vivo Participacoes (VIV, VIVO4.BR) announced Thursday a plan to expand broadband Internet coverage to reach 85% of the population by the end of 2011. Shares grew 6.2% to $29.29. Other Brazilian stocks trading higher included steelmaker Companhia Siderurgica Nacional (SID, CSNA3.BR), up 7.1% to $15.01, and pulp and paper company Fibria Celulose SA (FBR, FIBR3.BR), up 6.6% to $16.15. The Asian index closed up 3.1% to 117.27. Chinese solar companies jumped, led by Yingli Green Energy Holding Co. Ltd. (YGE), up 11% to $9.81, and Suntech Power Holdings Co. (STP), up 11% to $9.60. China said the country's exports grew significantly more than anticipated in May, reassuring investors that the global economy is on track. The emerging-markets index increased 3.5% to 288.85. Indian stocks traded higher, with copper producer Sterlite Industries (India) Ltd. (SLT, 500900.BY) climbing 6.4% to $13.87 and telecom provider Tata Communications Ltd. (TCL, 500483.BY) growing 5.6% to $10.89. -By Shara Tibken, Dow Jones Newswires; 212-416-2189; [email protected] (END) Dow Jones Newswires June 10, 2010 16:49 ET (20:49 GMT)