ADR Report: Shares Close Slightly Higher, With Broader Market

19th Jul 2010 22:02

By Adam Cancryn Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--International companies trading in New York closed higher Monday, shaking off a cut to Ireland's credit rating, as investors in the broader market also looked ahead to what's hoped to be strong earnings reports on tap later this week. The Bank of New York index of ADRs closed up 0.6% at 120.35. A rising debt burden and a weak growth outlook combined with a recovering banking system led Moody's Investors Service to cut Ireland's credit rating early in the day. However, the move wasn't unexpected, and financial stocks recovered to end mostly positive. The European index climbed 0.4% to 110.76. U.K. engineering and manufacturing company Tomkins PLC (TKS, TOMK.LN) said it has received a 325-pence-a-share, or GBP2.86 billion ($4.36 billion), cash bid approach from Canadian private-equity firm Onex Corp. and the Canada Pension Plan Investment Board. After considering the proposal terms, it has allowed the bidders to carry out due diligence, which is now at an advanced stage. Shares of Tomkins climbed 27% to $17.67. Swedish network equipment vendor L.M. Ericsson Telephone Co. (ERIC, ERIC-B.SK) said it has received its largest managed-service contract in China to date, from China Mobile's (CHL, 0941.HK) regional subsidiary China Mobile Hebei. Under the three-year contract, Ericsson will provide field maintenance for China Mobile Hebei's 22,000 base stations throughout Hebei province, which has around 70 million inhabitants. Ericsson gained 2.2% to $11.72, while China Mobile rose 0.8% to $49.61. BP PLC (BP, BP.LN) said tests on a well cap that has halted the flow of oil into the Gulf of Mexico for several days continue to produce expected results, but the company's shares dropped after U.S. authorities raised concerns that hydrocarbons may be leaking from the sea bed near the Macondo well. BP lost 3.6% to $35.75. The Latin American index increased 1.2% to 348.03. Brazilian credit-card-networking company Cielo SA (CIEL3.BR), formerly known as VisaNet, announced a partnership with local card operator Ticket. Under the deal, Cielo will capture transactions made with the 1.7 million merchants currently affiliated with Ticket. Cielo is controlled by Brazil's giant banks, the state run Banco do Brasil SA (BBAS3.BR) and private Banco Bradesco SA (BBD, BBDC4.BR). Shares of Banco Bradesco gained 2.7% to $16.88. The Asian index edged up 1% to 116.99. China-based Solarfun Power Holdings Co. (SOLF) announced its plan to increase its cell capacity by 50 megawatts through the enhancement of its manufacturing processes, and to convert 160 MW of its existing cell lines to high-efficiency selective-emitter technology, both to be completed in the early first quarter of 2011. Solarfun climbed 8% to $9.29. The emerging-markets index gained 1% to 287.51. Indian private-sector lender HDFC Bank Ltd. (HDB, 500180.BY) reported 34% growth in its first-quarter net profit, meeting analysts' projections, as demand for loans jumped. Profit for the April-June period increased to INR8.12 billion ($174.2 million) from INR6.06 billion ($130 million) a year earlier. HDFC advanced 2.3% to $147.39. Australia's Santos Ltd. (SSLTY, STO.AU) said that it has secured a A$2 billion ($1.74 million) bank loan from nine lenders, increasing its capacity to fund its share of the construction of multibillion-dollar liquefied natural gas plants in Queensland state and Papua New Guinea. Santos said it will use the money to refinance A$700 million ($609.3 million) of existing undrawn bank facilities and increase its liquidity, giving it flexibility to fund its growth. Santos rose 1.7% to $11.85. -By Adam Cancryn, Dow Jones Newswires; 212-416-3261; [email protected] (END) Dow Jones Newswires July 19, 2010 17:02 ET (21:02 GMT)