ADR REPORT: Shares Close Higher On Strong Corporate Earnings

22nd Jul 2010 21:57

By Emily Glazer Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--International companies trading in New York closed higher Thursday, rebounding sharply as investors welcomed another strong set of corporate earnings, as well as euro-zone economic activity. The Bank of New York index of ADRs closed up 3.2% to 123.8. Non-energy minerals closed higher, as shares of Sims Metal Management Ltd. (SMS, SGM.AU) rose 6.7% to $15.45, Russian coal and steel group Mechel OAO (MTL, MTLR.RS) gained 5.1% to $20.64, Australian building-products company James Hardie Industries NV (JHX, JHX.AU) increased 5.9% to $28.25 and Irish building materials company CRH PLC (CRH, CRH.DB) climbed 6.7% to $21.40. The finance sector also saw gains, as shares of U.K. bank Barclays PLC (BCS, BARC.LN) gained 7.4% to $18.67, Bank of Ireland (IRE) rose 7.7% to $3.93, National Bank of Greece SA (NBG, ETE.AT) increased 6.4% to $2.83 and Spanish bank Banco Santander SA (STD, SAN.MC) climbed 6.9% to $12.96. The European index increased 3.4% to 113.46. Deutsche Bank AG (DB, DBK.XE) is preparing to spin off BHF Bank and invites bids, two people close to the situation said. Shares of the German global investment bank gained 6.4% to $64.27. Swiss electrical-engineering firm ABB Ltd. (ABB, ABBN.VX, ABB.SK) reported an 8% drop in second-quarter profit on continued price pressure and a still-challenging market environment but said improved orders bode well for the remainder of the year. Shares of ABB climbed 6.1% to $19.57. Finland-based cell-phone maker Nokia Corp. (NOK, 7240.TO, NOK1V.HE) said profit for the second quarter fell as it struggled to compete with rivals such as Apple Inc. (AAPL) in the premium smartphone segment, but it expects new devices to spur a rebound later this year. Shares of Nokia climbed 4% to $9.17. The Latin American index rose 3.1% to 368.14. America Movil SAB (AMX, AMX.MX), Latin America's largest mobile operator, will likely report a 17% drop in second-quarter net profit later this week as foreign-exchange losses offset strong operating results, analysts forecast. Net profit likely fell to 18.75 billion pesos ($1.47 billion), or MXN0.55 a share, down from MXN22.51 billion, or MXN0.69 a share, in the second quarter of 2009, according to the median estimate of a Dow Jones Newswires survey of 10 analysts. Shares of America Movil SAB rose 4.7% to $51.24. Chilean beverage company Compania Cervecerias Unidas SA's (CCU, CCU.SN) second-quarter volume sales rose 9.7% on the year to 3.56 million hectoliters, the company said. Shares rose 1.9% to $51.30. The Asian index climbed 2.8% to 120. July new-vehicle retail sales rebounded sharply from weak June sales, driven by a multitude of small wins. Shares of Toyota Motor Corp. (TM, 7203.TO) rose 2.3% to $70.74, Honda Motor Co. Ltd. (HMC, 7267.TO) gained 2.3% to $30.17 and Nissan Motor Co. Ltd. (NSANY, 7201.TO) climbed 3.1% to $14.18. The emerging-markets index increased 3% to 300.76. South Africa's government plans to investigate an interim resolution to what had become an increasingly antagonistic pricing dispute between the country's largest steel producer and largest iron ore supplier. Critical issues arising from the dispute between Luxembourg-based steelmaker ArcelorMittal SA (MT, MT.AE) and Kumba Iron Ore Ltd. (KIO.JO) remain unresolved, the ministers of trade and industry, economic development and mineral resources said in a joint statement. The terms of supplying iron ore and steel products is in the national interest, they said. Shares of ArcelorMittal rose 1.8% to $4.66. Indian drug maker Dr. Reddy's Laboratories Ltd. (RDY, 500124.BY) reported a steeper-than-expected 14% drop in first-quarter consolidated net profit, dragged mainly by lower sales in the North American market. Shares of Dr. Reddy's fell 4.4% to $28.10. -By Emily Glazer, Dow Jones Newswires; 212-416-2913; [email protected] (END) Dow Jones Newswires July 22, 2010 16:57 ET (20:57 GMT)