ADR REPORT: Shares Rise On Positive Stress Test Results

23rd Jul 2010 21:50

By Adam Cancryn Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--International companies trading in New York closed slightly higher Friday after just seven of the 91 European banks involved in stress tests were deemed in need of additional capital. The Bank of New York index of ADRs closed up 0.75% at 124.73. European financial stocks finished mostly higher following the results of the European stress test, which were intended to restore trust in the European banking system and showed the large majority of the companies passed the examinations. Allied Irish Banks Plc (AIB, ALBK.DB), Royal Bank of Scotland Plc (RBS, RBSB, RBS.LN) and Bank of Ireland (IRE, BIR.DE) led the gains. Allied Irish Banks rose 4.5% to $2.55, Royal Bank of Scotland climbed 4.2% to $14.24, and Bank of Ireland increased 3.8% to $4.08. The European index increased 0.71% to 114.27. U.K. microchip designer ARM Holdings PLC (ARMH, ARM.LN) announced that it has signed a new licensing agreement with Microsoft Corp. (MSFT), extending the collaborative relationship between the two companies. Shares of ARM Holdings gained 12.2% to $16.15. De Beers SA, the world's largest producer of rough diamonds, reported a more than doubling in output in the first half of the year and said that although the global economic climate remains fragile, it has been encouraged by demand from Asia. De Beers is 45% owned by British mining and natural-resource company Anglo American Plc (AAUKY, AAL.LN), whose shares rose 4.3% to $19.57. Meanwhile, Swedish telecommunications equipment vendor Telefon AB L.M. Ericsson (ERIC, ERIC-B.SK) posted a rise in second-quarter net profit, but missed market expectations as industry component shortages hit sales. Ericsson stock lost 7.1% to $11.28, while competitors Nokia (NOK, NOK1V.HE) and Vodafone (VOD, VODPF, VOD.LN) benefited, gaining 2.7% to $9.42 and 2% to $23.24, respectively. The Latin American index gained 0.43% to 369.72. Mexican airport operator Grupo Aeroportuario del Sureste SAB (ASR, ASUR.MX) reported late Thursday a hefty jump in revenue and net profit in the second quarter as travel recovered after the 2009 recession and influenza outbreak. Shares rose 3.5% to $52.05. The Asian index climbed 1% to 121.23. Chinese Internet search giant Baidu Inc. (BIDU) is in talks with mobile handset makers that use rival Google Inc.'s (GOOG) Android operating system about embedding a Baidu search box on their phones. The company is in similar talks with makers of other mobile operating systems and handsets that run their software. Baidu gained 4.9% to $78.06. Several Japanese car manufacturers, including Nissan Motor Co. (NSANY, 7201.TO), Mitsubishi Motors Corp. (MMTOY, 7211.TO) and Honda Motor Co. (HMC, 7267.TO), are in talks with Chilean specialty chemical and fertilizer producer Sociedad Quimica y Minera de Chile SA (SQM, SQMCY, SQM-B.SN) about direct lithium sales for electric- and hybrid-car batteries. Northern Chile holds some of the world's largest lithium deposits. Nissan gained 1.1% to $14.33, Honda rose 1.8% to $30.70, while shares of Mitsubishi slipped 1.6% to $12.86. Sociedad Quimica also finished up 2.5% at $37.10. The emerging-markets index rose 0.66% to 302.74. Brazilian aircraft manufacturer Empresa Brasileira de Aeronautica SA (ERJ, EMBR3.BR), or Embraer, is evaluating whether to produce a bigger aircraft model. The company is evaluating making an aircraft with 130 seats. Currently, the biggest airplane produced by the company is Embraer 195, which offers 122 seats. Embraer stock gained 2% to $24.28. -By Adam Cancryn, Dow Jones Newswires; 212-416-3261; [email protected] (END) Dow Jones Newswires July 23, 2010 16:50 ET (20:50 GMT)