ADR Report: Shares Close Lower As Latin America Weighs

12th Jul 2010 21:57

By Victoria Finkle Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--International companies trading in New York closed lower, with Latin America posting the biggest drop. The Bank of New York index of ADRs closed down 0.4% to 120.54. Miners were hit, as Japan's Fair Trade Commission is expected to move forward with its antitrust review of Australian miner's BHP Billiton Ltd. (BHP, BHP.AU) and U.K.-based Rio Tinto PLC's (RTP, RIO.LN) plan to integrate their Australian iron-ore operations, the Nikkei reported. Shares of BHP closed down 2.3% to $66.28, and shares of Rio Tinto fell 2.9% to $46.89. Brazilian mining giant Vale SA (VALE, VALE5.BR) also fell, down 4.1% to $25.22. In the oil sector, Ecuador's National Assembly on Tuesday will begin discussing a bill that would expropriate operations by foreign oil companies unless they sign contracts increasing state control of the industry. Italy's Eni SpA (E, ENI.MI), Spain's Repsol YPF SA (REP, REP.MC) and Brazil's state-run Petroleo Brasileiro SA (PBR, PETR4.BR) are among the larger oil companies in Ecuador. Shares of Eni slipped 0.6% to $39.43, Repsol edged down 0.5% to $22.28, and Petroleo Brasileiro lost 1.7% to $35.75. The Latin American index dropped 2.1% to 352.32. Brazilian airline Gol Linhas Aereas Inteligentes SA (GOL, GOLL4.BR) will issue senior guaranteed dollar-denominated notes due 2020 through its subsidiary, GOL Finance, the carrier said in a filing. Shares fell 1.6% to $13.06. The European index slipped 0.1% to 109.87. BP PLC's (BP, BP.LN) shares jumped in the U.S. and London as deal speculation increased while plans for a new sealing cap also raised hopes for the company's efforts to stop the leak in the Gulf of Mexico. Shares closed up 8% to $36.76. Spain's Banco Santander SA (STD, SAN.MC) said it will buy Skandinaviska Enskilda Banken AB's (SEB-A.SK) German retail network for EUR555 million ($699 million), expanding its retail banking services in Europe's largest economy to include mortgages and deposits. Shares of Santander closed down 1.5% to $12.55. The Asian index slid 0.5% to 119.16. China insurers remain under heavy selling pressure, weighed by concerns of intensified competition on news that China's insurance regulator said Sunday it plans to remove guaranteed annual return limit of 2.5% on traditional life-insurance products, aimed to improve investor protection and the sector's development. China Life Insurance Co. (LFC, 2823.TW, 601628.SH) dropped 3.2% to $66.57. The emerging market index closed down 1.3% to 292.89. Russian dairy and juice producer Wimm-Bill-Dann Foods OJSC (WBD, WBDF.RS) is ready to face Danone SA (BN.FR) as a competitor, with the French foods company set to sell its stake, and may announce acquisitions in the region later this year, Chief Executive Tony Maher said in an interview. Wimm-Bill-Dann Foods fell 0.9% to $19.45. -By Victoria Finkle, Dow Jones Newswires; 212-416-3418; [email protected] (END) Dow Jones Newswires July 12, 2010 16:57 ET (20:57 GMT)