ADR REPORT: Shares Mostly Lower As Fed Outlook Weighs
June 22 2011 - 5:26PM
Dow Jones News
International companies trading in New York closed mostly lower
Wednesday in line with the broader market, as the Federal Reserve
issued a cautious economic outlook just days before it ends its
asset-buying program.
The Bank of New York index of ADRs fell 0.9% to 138.32, with the
European index posting the largest decline amid concerns that the
European consumer environment is showing signs of extreme
stress.
The European index lost 1.2% to 128.12.
Dutch electronics company Royal Philips Electronics NV (PHG,
PHIA.AE) was one of the day's largest decliners, falling 10% to
$23.36 after warning that its profit would be hit by weak consumer
demand in Western Europe.
Meanwhile, HSBC lowered its stock-investment ratings on Lloyds
Banking Group PLC (LYG, LLOY.LN), Barclays PLC (BCS, BARC.LN) and
Royal Bank of Scotland Group PLC (RBS, RBS.LN) to neutral from
overweight. HSBC said proposed regulatory changes from the
Independent Commission on Banking could mean a hit of up to 10
billion pounds ($16.2 billion) for the three U.K. Banks. Lloyds
fell 1.3% to $2.98 while Barclays lost 3.8% to $16.28. RBS closed
2.4% lower at $12.40.
The Asian index fell 0.5% to 132.92 and the emerging markets
index slid 0.5% to 324.48.
KT Corp. (KT, 030200.SE) fell 2% to $18.16 after South Korea's
telecommunications regulator said it will bar it and SK Telecom Co.
(SKM, 017670.SE), the country's top two mobile carriers, from
participating in a spectrum auction later this month due to fair
competition concerns. SK Telecom slid 0.9% to $17.70.
But China's Hanwha SolarOne Co. (HSOL) rose 12% to $5.89 as
Collins Stewart raised its stock-investment rating on the company
to buy from neutral, saying declining wafer prices will help the
company improve its cost structure.
Collins Stewart also initiated coverage of China Sunergy Co.
(CSUN) with a buy rating, saying higher capacity of solar-cell
component polysilicon has flattened the industry's cost curve and
helped the company compete with other vendors. China Sunergy surged
20% to $2.18.
Meanwhile, E-House (China) Holdings Ltd. (EJ) rose 9.8% to $8.93
after the company said Chairman Xin Zhou plans to buy $10 million
in the company's American depositary shares over the next year.
"Despite the challenging real estate market conditions we are
experiencing now, I am confident in the strong fundamentals and
long-term prospects of the real estate industry in China," Zhou
said.
The Latin American index was the lone gainer Wednesday, ending
0.3% higher at 396.36.
Brazilian mining giant Vale SA (VALE, VALE5.BR) has given
Argentine authorities an updated investment plan for its
multi-billion dollar Rio Colorado potash mine project in an effort
to address complaints that led the government to suspend work last
week. Vale's shares edged up 8 cents to $30.74.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com
SK Telecom (NYSE:SKM)
Historical Stock Chart
From Mar 2024 to Apr 2024
SK Telecom (NYSE:SKM)
Historical Stock Chart
From Apr 2023 to Apr 2024