By Anna Prior
International companies trading in New York ended sharply higher
Friday on more positive hints from European leaders and the
European Central Bank, as well as data showing the U.S. economy
slowed less than expected in the second quarter.
The Bank of New York index of ADRs rose 2.7% to 120.22, boosted
by hopes European officials will take action to bring down Spanish
and Italian borrowing costs after German Chancellor Angela Merkel
and French President Francois Hollande vowed to protect the euro
zone. Meanwhile, the U.S. Commerce Department's initial reading of
the country's gross domestic product showed annualized growth in
the second quarter of 1.5%, better than the 1.3% expected by
economists.
The European index increased 2.5% to 111.92, helped higher by
surging shares of the National Bank of Greece S.A. (NBG, ETE.AT),
which jumped 14% to $1.59. European Union regulators granted
temporary approval for a bridge recapitalization of four Greek
banks, including the Athens-based National Bank of Greece, worth a
total of EUR18 billion, roughly $22.3 billion. EU Antitrust Chief
Joaquin Almunia said the aid was granted at a time when Greek
banks, hit by the country's debt crisis, are working "under extreme
conditions."
Bucking the upswing, however, was Ireland's Amarin Corp. (AMRN),
a biopharmaceutical company that received approval from the U.S.
Food and Drug Administration for its fish-oil heart pill, Vascepa.
However, uncertainty about whether or not the drug will get patent
protection, as well as disappointment over the scope of the
approval--which was limited to just patients with "very high
triglycerides"--weighed on the company's stock price. Shares fell
12% to $13.51.
The Asian index climbed 2.8% to 117.38, boosted by Taiwan-based
chipmaker Silicon Motion Technology Corp. (SIMO), which saw shares
surge on positive second-quarter results that beat expectations.
The company said sales of its "new growth products," specifically
LTE and SSD, increased 75% sequentially and accounted for 32% of
total revenue, more than offsetting "the unfavorable market
conditions relating to sales of our Core Products," said President
and Chief Executive Wallace Kou. Shares ended the New York trading
day up 22% to $15.33.
The Latin American index jumped 3.4% to 323.73 and the
emerging-markets index rose 3% to 272.67.
Harmony Gold Mining Co. (HMY, HAR.JO) said production in the
June quarter is likely to be 13% to 14% higher than the previous
period, driven by higher tonnage and improved grade. U.S.-listed
shares jumped 3.9% to $10.13. Other South African mining companies
also traded higher, with Gold Fields Ltd. (GFI, GFI.JO) adding 2.4%
to $13.12 and AngloGold Ashanti Ltd. (AU, ANG.JO) rising 3.2% to
$34.76.
Write to Anna Prior at anna.prior@dowjones.com.
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