ADR Report: Shares Make Modest Gains After Rally Loses Steam

6th Jul 2010 21:56

By Jennifer Cummings Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--A rally for international companies trading in New York on Tuesday morning lost steam later in the day, but the stocks still managed to close higher, boosted by optimism over global growth. The Bank of New York index moved up 1.7% to 115.8. The index had moved up to 117 earlier in the session as the markets bounced back from last week's slump. But the markets steadily moved lower later in the day as optimism tapered back. The European index rose 1.9% to 104.9. BP PLC (BP, BP.LN) killed speculation Tuesday that it was looking for a white-knight investor to take a large equity stake in the company by saying it won't issue new equity to raise money to cover the costs of the oil spill in the Gulf of Mexico. Shares rose 8.7% to $31.91. Allied Irish Banks PLC (AIB, ALBK.DB) is supportive of a bid by U.K.-based HSBC Holdings PLC (HBC, 0005.HK, HSBA.LN) to buy its Polish unit, Bank Zachodni WBK, as AIB managers feel they owe HSBC for helping set up a "bad bank," Polish daily Dziennik Gazeta Prawna reports Tuesday without citing sources. Allied Irish rose 4.1% to $2.28 as HSBC climbed 1.4% to $46.34. France Telecom (FTE, FTE.FR) aims to attract 100 million new clients and review its purchase of sports-broadcasting rights as part of a five-year plan to restart growth. The plan comes four months after Stephane Richard, a former civil servant, became chief executive of the company, which has been suffering from low morale and a frumpy image. Shares rose 3.4% to $18.40. The Asian index gained 1.9% to 115.7. JA Solar Holdings Co. Ltd. (JASO) climbed 5.3% to $5.35 as it said it has secured an agreement to be a supplier for silicon wafer maker MEMC Electronic Materials Inc. (WFR) through 2012. A Nissan Motor Co. Ltd. (NSANY, 7201.TO) engineer said Tuesday that a gasoline-electric hybrid version of its Fuga sedan will likely be up to 90% more fuel efficient than the gasoline-powered version. The remarks gave the first indication of the fuel efficiency of the Fuga hybrid, which is Japan-based Nissan's first gasoline-electric model sold on a full-scale basis using the company's own hybrid technology. Nissan climbed 6.3% to $14.62. China-based online travel-services company CTrip.com International Ltd. (CTRP) shares fell 14% to $32.81 as reports circulated that Chinese airlines were cutting commissions paid to travel agencies on some routes. JPMorgan raised its target price on Asia-listed shares of Taiwan Semiconductor Manufacturing Co. (TSM, 2330.TW) after increasing its fiscal-year 2011 earnings-per-share estimate by 9% to a street-high level. The firm said that near term, TSM could surprise on upside with strong second-quarter 2010 results and upbeat third-quarter 2010 guidance. Shares rose 4.5% to $9.84. The emerging-markets index closed up 0.7% to 284.1 as material stocks mostly rose. Highveld Steel & Vanadium Corp. (HGVLY, HVL.JO), a South African producer of flat products, structural steel and vanadium slag, rose 1.8% to $9.90 as Russian coal and steel group Mechel OAO (MTL, MTLR.RS) climbed 3.5% to $18.06. Material stocks in Latin America weren't as strong, leading that index to close up just 0.5% to 341.1. Peruvian precious metals mining company Compania de Minas Buenaventura SA (BVN, BUENAVC1.VL) dropped 0.3% to $36.91 as Brazilian long-rolled steel producer Gerdau SA (GGB, GGBR4.BR) fell 0.8% to $13.23. Jennifer Cummings, Dow Jones Newswires; 212-416-2474; [email protected] (END) Dow Jones Newswires July 06, 2010 16:56 ET (20:56 GMT)