ADR Report: Shares Close Mostly Flat; Latin America Gets Lift

2nd Jul 2010 22:05

By Victoria Finkle Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--International companies trading in New York were mostly flat on light trading ahead of the July Fourth weekend, though strength in Latin America couldn't hold up the broader ADR index. The Bank of New York index of ADRs slipped 0.7% to 113.86. Chinese energy companies closed lower, led on a drop in oil prices. Shares of Chinese offshore oil and gas producer CNOOC Ltd.(CEO, 0883.HK) fell 1.5% to $166.50, and shares of Sinopec Shanghai Petrochemical Co. (SHI, 0338.HK, 600688.SH), one of China's largest refiners, closed down 2% to $36.80. Meanwhile, China's solar sector soared, helping push the emerging markets index up 0.53% to 282.06. Shandong province in eastern China will offer preferential tariffs to developers of projects for solar power to be supplied to grids in order to encourage development of the renewable energy source, the provincial minister said. ReneSola Ltd. (SOL, SOLA.LN) jumped 5.6% to $6.84, Yingli Green Energy Holding Co. (YGE) climbed 5.1% to $11.12, and Trina Solar Ltd. (TSL) ended up 4.7% to $19.28. The European index slid 0.33% to 102.94. Takeover speculation grows after a report that French drug maker Sanofi-Aventis SA (SNY, SAN.FR) is preparing for a major U.S. acquisition that may exceed $20 billion. Shares of Sanofi-Aventis slid 3.2% to $29.40. U.K. insurer Aviva PLC (AV, AV.LN) said it expects GBP33 billion ($50.1 billion) of cash flow from its life- insurance business over the next 20 years. Shares closed up 2.8% to $9.71. The Latin American index climbed 1.1% to 339.53. The best way for Telefonica SA (TEF) to get around the Portuguese government's veto of its offer to buy Portugal Telecom SGPS SA's (PT) stake in Brazil's Vivo Participacoes SA (VIV, VIVO4.BR) is to make a new offer, Diario Economico reported, citing unidentified legal sources. Shares of Vivo rose 1.6% to $27.27. The Asian index edged up 0.01% to 113.59. Japanese technology giant Hitachi Ltd. (HIT, 6501.TO) and two Mitsubishi companies will spin off and integrate their hydroelectric power businesses under a new firm to be created next year. Shares of Hitachi rose 1.7% to $36.40. China-based alumina producer Aluminum Corp. of China Ltd. (ACH, 2600.HK, 601600.SH), or Chalco, has shelved plans to invest A$3 billion ($2.52 billion) in a bauxite and alumina project in Queensland state, citing soaring costs and market conditions. Shares closed down 1.8% to $18.43. -By Victoria Finkle, Dow Jones Newswires; 212-416-3418; [email protected] (END) Dow Jones Newswires July 02, 2010 17:05 ET (21:05 GMT)