ADR Report: Shares Close Mostly Higher, But Asia Weighs

1st Jul 2010 21:58

By Adam Cancryn Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--International companies trading in New York closed mostly higher Thursday, even as disappointing economic data weighed on the broader U.S. market. The Bank of New York index of ADRs closed up 0.8% to 113.94. European banking stocks rebounded after falling early in response to warnings of a downgrade to Spain's credit rating. Moody's Investors Service late Wednesday said it might cut the country's maximum "Aaa" credit rating. That news weighed heavily on shares in the morning, but most bounced back throughout the day. Spanish banks Banco Bilbao Vizcaya Argentaria (BBVA, BBVA.MC) and Banco Santander S.A. (STD, SAN.MC) led the sector, finishing up 5.1% to $10.81 and 5.4% to $11.07, respectively. Dutch Bank ING Groep N.V. (ING, INGA.AE) also gained 3.1%, to $7.64. Shares of Spanish telecom company Telefonica S.A. (TEF, TEF.MC), Portugal Telecom SGPS S.A. (PT, PTC.LB) and Brazilian mobile operator Vivo Participacoes S.A. (VIV, VIVO4.BR) all rose after news that Portugal's prime minister, Jose Socrates, vetoed Telefonica's EUR7.15 billion ($8.95 billion) bid for Portugal Telecom's stake in Vivo Participacoes. PT and Telefonica have been locked in a power struggle over Vivo Participacoes, which the two Iberian telecommunication companies control through Brasilcel, a joint venture that owns 60% of Vivo. Telefonica's shares gained 3.5% to $57.46, PT jumped 5.6% to $10.47, and Vivo Participacoes rose 3.6% to $26.85. The European index edged up 1.3% to 103.28. At least seven companies are bidding for Allied Irish Banks Plc's (AIB, ALBK.DB) 70.5% stake in Poland's Bank Zachodni WBK SA (BZW.WA). The bidders include Poland's two largest lenders--state-controlled PKO Bank Polski (PKO.WA) and Bank Pekao SA (PEO.WA), a unit of Unicredit SpA (UCG.MI). Russia's Sberbank (SBRBF), HSBC Plc (HBC, 0005.HK, HSBA.LN), Italy's Intesa Sanpaolo SpA (ISP.MI), France's BNP Paribas SA (BNP.FR) and U.S.-based private equity company Apax Partners have also placed bids. Allied Irish Banks has to sell its stake in the Polish lender to meet capital targets, after the Irish bank received EUR3.5 billion ($4.4 billion) in government aid to help offset its bad debts. Shares of Allied Irish Banks fell 2.8% to $2.12 while HSBC posted a small gain, 0.7%, to $45.91. Nokia (NOK, NOK1V.HE) subsidiary Nokia Siemens Networks said it has been selected by Vodafone Portugal to enable the seamless convergence of legacy services with new data services. The Finnish telecom company also announced that the Danish state railway has selected its GSM-Railway technology for standardized railway safety communications. Shares of Nokia gained 2.6% to $8.36. U.K. mining company Randgold Resources Ltd. (GOLD, RRS.LN) announced that Jon Walden stepped down as a company director. Its shares lost 2.2% to $92.66. The Latin American index rose 0.9% to 335.82. Japanese oil and gas producer Inpex Corp. (IPXHY, 1604-TO, 1605.TO) will expand its Latin America operations, enhancing cooperation with Brazil's state-owned Petroleo Brasileiro SA (PBR, PETR4.BR), or Petrobras, as part of a wider strategy to build up its overseas portfolio. Shares of Petrobras declined 2% to $33.63. The Asian index slipped 0.1% to 113.58. ReneSola Ltd. (SOL, SOLA.LN) said it expects to post better-than-expected results for the second quarter because of strong demand. The solar company also projected second-half revenue well above analysts' forecasts. ReneSola's shares jumped 8.5% to $6.48. Japanese trading house Mitsui & Co. (MITSY, 8031.TO) said it has signed an accord with Dow Chemical Co. (DOW) to set up an equally owned joint venture in Freeport, Texas, to manufacture and sell caustic soda and chlorine. The Tokyo-based company said it will invest about $140 million in this project. In addition, Mitsui is in talks with financial institutions to arrange project finance for additional funds. Its shares lost 2.6% to $234.85. The emerging-markets index gained 0.3% to 280.56. Russian steel and coal producer Mechel OAO (MTL, MTLR) said its controlling shareholder, Igor Zyuzin, has left his post of chief executive to become chairman. The first deputy CEO, Yevgeny Mikhel, replaces Zyuzin as CEO. Mechel OAO lost 2.5% to $17.69. -By Adam Cancryn, Dow Jones Newswires; 212-416-3261; [email protected] (END) Dow Jones Newswires July 01, 2010 16:58 ET (20:58 GMT)