ADR Report: Shares Rise On Signs Of Stabilization In Europe
November 11 2011 - 4:08PM
Dow Jones News
International companies trading in New York closed higher
Friday, in line with the broader markets, as signs of political
progress in Italy and Greece boosted investor confidence and sent
commodity prices upward.
The Bank of New York index of ADRs added 2.2% to 123.89, aided
by European stocks.
Italy's Senate on Friday approved a budget bill that includes
new austerity measures, clearing the way for parliament's lower
chamber to pass the law on Saturday and for the resignation of
Prime Minister Silvio Berlusconi. Meanwhile, interim Greek Prime
Minister Lucas Papademos appointed a new cabinet Friday, which will
be tasked with implementing the country's latest bailout before the
country's elections.
European banks posted broad gains, with shares of Germany's
Deutsche Bank AG (DB, DBK.XE) up 6.1% to $39.77, France's BNP
Paribas SA (BNPQY, BNP.FR) up 6.2% to $22 and Royal Bank of
Scotland Group PLC (RBS, RBS.LN) up 6.3% to $7.25.
Allianz SE (AZSEY, ALV.XE) on Friday said it will increase its
dividend payout ratio for this year so that shareholders aren't
penalized for an expected net profit decline which it said doesn't
adequately reflect its performance. Shares climbed 6% to
$10.42.
Overall, the European index rose 2.4% to 114.79.
Shares of Italy's largest telecommunications company, Telecom
Italia SpA (TI, TIT.MI), jumped 6.2% to $12.23 after it reported
earnings rose 33% in the third quarter, helped by robust growth in
Latin America and as revenue fell less sharply at home.
Meanwhile, a Russian court Friday rejected two multi-billion
dollar claims against BP (BP, BP.LN) brought by minority
shareholders in the U.K. oil major's Russian joint venture TNK-BP
Holding (TNBP.RS). The arbitration court in the Siberian town of
Tyumen, where TNK-BP Holding is registered, ruled against a small
group of minority shareholders, who allege BP acted against the
company's best interest by dismissing a bid to replace the U.K.
company in a share swap and Arctic exploration deal with Rosneft.
BP shares rose 2.1% to $44.01.
The Asian index gained 1.6% to 118.27.
Chinese energy companies posted strong gains as prices of
crude-oil futures settled at its highest level in nearly four
months, closing 1.2% higher to $1.21. Sinopec Shanghai
Petrochemical Co. (SHI, K3DD.SG, 600688.SH, 0338.HK) added 2.5% to
$38.22, China Petroleum & Chemical Corp. (SNP, 0386.HK,
600028.SH) gained 2.2% to $106.48, and PetroChina Co. (PTR,
K3OD.SG, 601857.SH, 0857.HK) closed 1.7% higher at $134.28.
Shares of Home Inns & Hotels Management Inc. (HMIN, K3UD.SG)
jumped 9.5% to $35.29 as the Chinese hotel chain reported late
Thursday its third-quarter profit rose 14%, beating analysts'
estimates. The company also reported improving occupancy against
the previous quarter.
The Latin American index closed 2.4% higher at 354.20 while the
emerging markets index advanced 2.2% to 294.16.
South American oil companies also posted strong gains in line
with the energy sector. Shares of Petroleo Brasileiro SA (PBR,
PETR4.BR) closed 2.4% higher at $27.49, while shares of Petrobras
Argentina SA (PZE, PESA.BA) rose 1.1% to $13.63.
South African mining companies rallied as gold futures rebounded
on euro-zone optimism after two days of losses. Shares of AngloGold
Ashanti Ltd. (AU, ANG.JO) rose 3.4% to $48.83, while Harmony Gold
Mining Co. Ltd. (HMY, HAR.JO) advanced 3.5% to $14.18 and Gold
Fields Ltd. (GFI, GFI.JO) jumped 3.2% to $17.68. Shares of South
American miners also improved as Brazil's Vale SA (VALE, VALE5.BR)
closed 2.3% higher at $25.99, and Peru's Compania de Minas
Buenaventura SA (BVN, BUENAVC1.VL) advanced 3.6% to $44.38.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;
nathalie.tadena@dowjones.com