ADR Report: Shares Fall On Disappointing Economic Data
March 28 2012 - 5:23PM
Dow Jones News
Shares of international companies trading in New York closed
lower Wednesday, as disappointing domestic and European economic
data weighed on investors.
The Bank of New York index of American depositary shares fell
0.8% to 130.46.
The European index dropped 0.7% to 119.56. Major indexes in
Europe closed broadly lower after U.S. durable goods data came in
below expectations and concerns regarding Spain resurfaced.
ADRs of European financial stocks led the declines, with Banco
Santander SA (STD) down 2.3%, ING Groep NV (ING) dropping 2% and
Prudential PLC (PUK) decreasing 2.1%.
A weak day for commodity prices led to declines for
Anglo-Australian mining company Rio Tinto PLC (RIO) and steelmaker
ArcelorMittal SA (MT). Rio Tinto earlier Wednesday disclosed it
entered into exclusive talks with U.S.-based private-investment
firm H.I.G. Capital regarding its offer for Rio's European
specialty alumina business. ArcelorMittal, meanwhile, said it sold
part of its stake in Turkey's largest flat steel producer, in line
with its strategy to focus on core assets and reduce debt. Rio
Tinto declined 1.7%, and ArcelorMittal fell 3.3%.
The Latin American index fell 1.8% to 368.99.
Nearly all financial stocks traded lower, including a 2.8%
decline for Itau Unibanco Holding S/A (ITUB) and a 2.7% decrease
for Grupo Financiero Galicia SA (GGAL).
Brazilian mining giant Vale SA (VALE) launched the sale of $1.25
billion in bonds, by reopening an existing issue due in 2022, which
was originally sold in January. Vale's ADRs dropped 2%, declining
with other international mining firms.
The emerging-markets index decreased 1.7% to 304.54.
Gold futures slumped Wednesday, with Comex April gold falling
1.6% to $1,657.90 a troy ounce. South African mining companies
traded lower, including a 4.5% drop for AngloGold Ashanti Ltd. (AU)
and a 4.4% decline for Harmony Gold Mining Co. (HMY).
The Asian index slipped 0.6% to 129.51. South Korean financials
closed lower, including a 1.5% drop for KB Financial Group Inc.
(KB) and a 0.7% decrease for Shinhan Financial Group Co. (SHG).
Shares of China Telecom Corp. (CHA) closed up 0.8%. China's
third-largest mobile carrier inked a deal to exclusively carry
Finnish handset maker Nokia Corp.'s (NOK) Chinese version of its
Lumia 800 smartphone.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com