ADR REPORT: Shares Gain, With Materials Stocks Leading

20th Jul 2010 21:54

By Victoria Finkle Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--International companies trading in New York closed up, with materials stocks leading gains and the Latin American and emerging markets indexes finishing strong. The Bank of New York index rose 1% to 121.51. Materials stocks, whose demand is often tied to economic growth, were strong on hopes for higher iron ore and steel prices later in the year. Brazilian mining giant Vale SA (VALE, VALE5.BR) rose 6.7% to $26.44, and Brazilian steel producer Gerdau SA (GGB, GGBR4.BR) climbed 4.9% to $13.81. Meanwhile, Barclays Capital upgraded U.K.-based mining giant BHP Billiton PLC (BBL, BLT.LN) to overweight from equalweight. Shares closed up 4.7% to $57.92. U.K.-based metal and mining company Rio Tinto PLC (RTP, RIO.LN) also rose, after disclosing that it has produced a new line of aluminum alloys and entered into contracts with jetliner makers Airbus and Bombardier Inc. Rio Tinto gained 5.6% to $49.14. The Latin American index jumped 3% to 358.48. Chilean flag carrier Lan Airlines SA (LFL, LAN.SN) has inked an agreement to purchase 50 short-range Airbus A320 family aircraft. The purchase of the planes and the sale of its used aircraft not only serve to increase LAN's fleet but also to replace older and less-efficient aircraft. Shares rose 3% to $21.75. The emerging markets index gained 2.3% to 294.20. Brazilian aircraft maker Empresa Brasileira de Aeronautica SA (ERJ, EMBR3.BR), or Embraer, sees signs of growth in the global airline industry, Chief Financial Officer Luiz Carlos Aguiar said. Meanwhile, Flybe Ltd. (FBE.YY) announced an order for up to 140 Embraer regional jets, which is valued at $1.3 billion, based on list prices. Shares of Embraer gained 5.7% to $23.08. The Asian index climbed 1.2% to 118.43. Chip maker Taiwan Semiconductor Manufacturing Co. (TSM, 2330.TW) and U.K.-based chip design company ARM Holdings PLC (ARMH, ARM.LN) said they signed a long-term strategic agreement that provides TSMC with access to a broad range of ARM processors, which analysts said will further strengthen TSMC's dominant position in the foundry market. Taiwan Semiconductor shares rose 1.7% to $10.30, while ARM Holdings edged up 0.4% to $13.95. The European index edged up 0.5% to 111.29. Nokia Siemens Networks said it won a $7 billion contract to deploy and maintain a new U.S. mobile broadband network, cementing its presence in the North American market a day after agreeing to buy the majority of Motorola Inc.'s (MOT) network-equipment business. NSN is a joint venture between Finland's Nokia Corp. (NOK, NOK1V.HE) and Germany's Siemens AG (SI, SIE.XE). Shares of Nokia rose 2.2% to $9.01, while shares of Siemens edged down 0.1% to $95.11. -By Victoria Finkle, Dow Jones Newswires; 212-416-3418; [email protected] (END) Dow Jones Newswires July 20, 2010 16:54 ET (20:54 GMT)