ADR REPORT: Shares Gain As Strong Earnings Reports Continue

26th Jul 2010 21:42

By Victoria Finkle Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--International companies trading in New York closed higher Monday on continued enthusiasm over second-quarter earnings, though trading volumes were thin. The Bank of New York index of ADRs climbed 0.9% to 125.84. European financial staged a relief rally, following stress tests completed Friday. Bank of Ireland (IRE) rose 9.6% to $4.47, while UK's Barclays PLC (BCS, BARC.LN) climbed 4.9% to $19.80, and Spanish bank Banco Bilbao Vizcaya Argentaria SA (BBVA, BBVA.MC) rose 2.7% to $13.13. Shares of Germany's Deutsche Bank AG (DB, DBK.XE) also gained, after the bank disclosed that it will provide an update on its sovereign debt exposure when it publishes second-quarter earnings Tuesday. Deutsche Bank was criticized for failing to disclose full details of its sovereign exposure in the results of European stress tests published Friday--which most banks did. Shares rose 2.5% to $66.18. Meanwhile, shares in major Greek banks surged sharply on prospects of M&A in the local sector and after all but one failed the stress tests. National Bank of Greece SA's (NBG, ETE.AT) shares gained 3.2% to $2.89. The European index climbed 1.1% to 115.54. UK publisher Pearson PLC (PSO, PSON.LN) upgraded its outlook for 2010 as the publisher reported better-than-expected first-half results, underpinned by the strong performance of its education and publishing operations. Shares rose 6.7% to $16.09. BP PLC (BP, BP.LN) stock gained following reports that BP's board is negotiating the departure of its embattled chief executive, Tony Hayward. Shares closed up 4.9% to $38.65. The Asian index gained 0.6% to 122.01. Chinese internet company Baidu Inc. (BIDU) fielded the most mobile searches of any company in China in the second quarter, accounting for 34.3% of total searches after a rise of about five percentage points from the first quarter, local research firm Analysys International said. Meanwhile, Google's share of the mobile searches fell by about five percentage points to 12.3% in the second quarter, moving it from second to third place behind local mobile search provider Easou.com. Shares of Baidu rose 3% to $80.37. The Latin American index inched up 0.2% to 370.59. Chilean Coca-Cola bottler and beverage company Embotelladora Andina (AKOA, AKOB, ANDINA-B.SN) is investing significantly in its domestic and Brazilian operations as it looks to increase production capacity and boost sales in the region, El Mercurio newspaper reported. In preparation for increased sales during the 2014 soccer World Cup and 2016 Olympics in Brazil, Andina is investing $50 million annually in 2010 and 2011 in its two Brazil plants. Andina's A-shares rose 4.8% to 23.52 and its B-shares gained 3.4% to $27.93. The emerging markets index closed up 0.5% to 304.10. The European Commission charged French pharmaceutical company Les Laboratoires Servier SA with providing misleading information during an antitrust investigation. As a result of the sector inquiry the commission began a specific probe into Servier over "possibly restrictive" agreements the company struck with several generic makers including generic drug maker Teva Pharmaceutical Industries Ltd. (TEVA, TEVA.TV), to slow the entry of generic perindopril. Shares of TEVA rose 1.6% to $50.15. India's Sterlite Industries Ltd. (SLT, 500900.BY) said higher product prices helped it post a 50% increase in first quarter consolidated net profit, but its results still fell short of market expectations. Shares inched up 0.9% to $15.24. -By Victoria Finkle, Dow Jones Newswires; 212-416-3418; [email protected] (END) Dow Jones Newswires July 26, 2010 16:42 ET (20:42 GMT)