ADR Report: Shares Close Higher With Spanish Stocks Strong

11th Jun 2010 21:38

By David Benoit Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--International companies trading in New York rose on Friday as investors' fears were tamed and as a Spanish banking giant proved bullish enough to pace the European index higher. The Bank of New York index of ADRs grew 0.51% to 117.17. Spanish banking giant Banco Santander SA (STD, SAN.MC) expects to have a similar net profit this year as in 2009, despite economic uncertainty and weakness in Spain, Chairman Emilio Botin said Friday during the bank's annual general meeting. Santander, the largest bank in the euro zone by market value, in 2009 reported net profit of EUR8.894 billion ($10.78 billion). Its shares gained 6.5% to $10.55. Meanwhile, fellow Spanish bank Banco Bilbao Vizcaya Argentaria SA (BBVA, BBVA.MC) rose, as did other Spanish companies such as oil giant Repsol YPF SA (REP, REP.MC) and telecommunications firm Telefonica SA (TEF, TEF.MC). Banco Bilbao rose 3.8% to $10.28, Repsol added 2.3% to $20.80 and Telefonica 1.7% to $58.17. The European index increased 0.64% to 105.44. BP PLC (BP, BP.LN) rose as investors regained some confidence in the oil major's ability to cope with the political and financial fallout from the massive oil spill in the Gulf of Mexico, and even as speculation surrounding its dividend continued. "BP shares now have as much upside potential as the rest of the European integrated oil sector," Goldman Sachs analysts said. Shares rose 3.6% to $33.97 A Food and Drug Administration medical review said a proposed Novartis AG (NVS, NOVN.VX) drug "appears to have an acceptable safety profile." The drug fingolimod, which the Swiss company has proposed selling with the brand name Gilenia, is being reviewed by the agency's peripheral and central-nervous-system drugs advisory committee. Its shares rose 1.7% to $48.25. The Latin American index rose 0.50% to 353.58. Mexico's America Movil SAB de CV (AMX, AMOV, AMX.MX) said Friday its takeover bid of Latin American phone company Telmex Internacional SAB (TII, TIIA, TELINT) might fall short of the 95% stake it needs to delist the firm's shares. That could hinder Mexican billionaire Carlos Slim's $23 billion plan to consolidate control of his diverse telecommunications assets under America Movil through two separate share tender offers. If successful, he'll own of the largest telecom firms in the world with more than 250 million subscribers in the Americas. Telmex shares fell 17 cents to $18.23, while America Movil slipped 22 cents to $49.12. Brazilian aircraft maker Embraer (ERJ, EMBR4.BR) will pay a dividend of 34.5 million Brazilian reals ($19.1 million) in the form of interest on its own capital, the company said late Thursday in a statement. Shares rose 2.1% to $21.85, while airline Gol Linha Aereas Inteligentes SA (GOL, GOLL4.BR) added 1.1% to $12.05. The Asian index edged up 0.25% to 117.56. South Korea's plans to curb derivatives trade in its currency, the won, could prompt foreign banks to unwind up to $35 billion in forward dollar positions, though authorities say they will try to avoid jolting the market with the tighter rules. The government plans to announce Sunday afternoon an extensive set of restrictions on foreign-exchange transactions that will affect forwards, currency swaps and other areas, officials said Friday. The new measures mark the latest effort by Seoul to try to reduce won volatility, which can cause headaches for exporters and create instability for the financial sector. Shares of Woori Finance Holdings Co. (WF, 05300.SE) slid 2.9% to $36.34, while Shinhan Finanancial Group Co. (SHG, 055550.SE) lost 9 cents to $74.49. Chinese solar power stocks climbed Friday, as JA Solar Holdings Co. (JASO) added 5.7% to $4.79, Solarfun Power Holdings Co. (SOLF) rose 6% to $8.11 and Yingli Green Energy Holding Co. (YGE) advanced 4.7% to $10.27. Trina Solar Ltd. (TSL) increased 3.2% to $18.56, while Suntech Power Holdings Co. (STP) climbed 3.2% to $9.91. The emerging market index grew 0.50% to 290.28. Sasol Ltd. (SSL, SAP.JO), the world's largest producer of motor fuels made from coal, said Friday it's constructing a new tri-ethyl aluminum production unit in northern Germany. The facility at its Sasol Olefins & Surfactants plant in Brunsbuttel, Schleswig-Holstein, will have an initial annual production of 6,000 metric tons and is scheduled to go on stream in early 2012, the Johannesburg-based company said. Its shares slipped 21 cents to $36.21. -By David Benoit, Dow Jones Newswires; 212-416-2458; [email protected] (END) Dow Jones Newswires June 11, 2010 16:38 ET (20:38 GMT)