ADR Report: Shares End Mostly Lower Amid Italian Bank Worries
June 24 2011 - 5:17PM
Dow Jones News
International companies trading in New York closed mostly lower
Friday, in line with the broader market, after worries about
Italian banks weighed on European bank stocks.
The Bank of New York index of ADRs retreated 0.8% to 136.25.
European bank stocks were pressured after several Italian bank
stocks were suspended following a sudden drop in their share
prices. Among the possible reasons for the tumble include a rumor
that those banks undergoing a "stress test" won't pass it in July.
Moody's Investors Service also warned that a group of Italian banks
face possible ratings downgrades.
A trader said speculation surrounding the health of certain
Italian banks was enough to shake the confidence of market
participants who are already on edge amid the first stages of the
Greek bailout deal.
Lloyds Banking Group PLC (LYG, LLOY.LN) declined 5.2% to $2.73.
Royal Bank of Scotland Group PLC (RBS, RBS.LN) fell 5% to $11.40.
National Bank of Greece SA (NBG, ETE.AT) dropped 7.8% to $1.31.
The European index was down 1.3% at 125.17.
The Latin American index dropped 0.3% to 391.97.
Companhia Brasileira de Distribuicao Grupo Pao de Acucar (CBD,
PCAR4.BR) fell 0.9% to $41.61 after a French court decision in
part-owner Casino Guichard-Perrachon SA's (CO.FR) legal fight with
Carrefour SA (CA.FR). The court said evidence seized at Carrefour's
headquarters as part of the dispute must be sealed pending further
court rulings.
Brazilian companies ended mostly lower. Other decliners included
pulp and paper producer Fibria Celulose SA (FBR, FIBR3.BR), which
dropped 3.7% to $12.96, and petrochemicals company Braskem SA (BAK,
BRKMS.BR), which fell 2.6% to $28.01.
The emerging markets index dipped 0.2% to 322.72.
Taiwan Semiconductor Manufacturing Co. Ltd. (TSM, 2330.TW) fell
3.4% to $12.40 after Bank of America-Merrill Lynch downgraded its
rating on the company to underperform from neutral on high
supply-chain inventory, on signs of softening demand and modest
upside from new products.
Meanwhile, South African gold miner AngloGold Ashanti Ltd. (AU,
ANG.JO) fell 3.2% to $40.12 after RBC lowered its rating on the
company to sector perform from outperform, citing "muted"
first-quarter results and "guidance of more of the same" in the
second quarter.
The Asian index was the lone gainer Friday, rising 0.4% to
133.41.
China Life Insurance Co. (LFC, 2628.HK) rose 2.2% to $49.05 as
it said it will inject CNY1.6 billion capital in cash into its
property and casualty insurance unit in a bid to boost growth in
its non-life insurance business. The company is China's largest
life insurer.
Sony Corp. (SNE, 6758.TO) ended 1.3% higher at $25.63, helped by
a stock-investment rating upgrade from Mitsubishi UFJ Morgan
Stanley Securities to outperform from neutral. The firm said shares
could benefit if earnings improve from narrower losses at Sony's
LCD TV business, the launch of its new handheld game console and
stronger image sensor sales.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com