ADRs End Lower; BP, CRH and Pearson Trade Actively
July 16 2019 - 7:32PM
Dow Jones News
By Aisha Al-Muslim
International stocks trading in New York closed lower
Tuesday.
The S&P/BNY Mellon index of American depositary receipts
fell 0.5% to 141.87. The European index declined 0.5% to 131.51.
The Asian index decreased 0.4% to 164.19. The Latin American index
increased 0.5% to 253.50. And the emerging-markets index fell 0.3%
to 308.63.
BP PLC (BP), CRH PLC (CRH) and Pearson PLC (PSO) were among
those with ADRs that traded actively.
BP might take a hit from plant maintenance activity in
second-quarter results on July 30, says Credit Suisse. The
brokerage says the quarter is likely to be less predictable for the
oil major because of heavier maintenance in its production and
refining businesses. Credit Suisse cuts its net-income forecast to
$2.25 billion. "Quarterly results are key catalysts, as is progress
on its disposal plan. Sticking to its capital framework is
important. As the business progressively improves, an update on the
distribution policy may also be forthcoming. Risks include a
reversal in operating/capital efficiency." ADRs of BP fell 1.2% to
$40.21.
CRH's sale of its European distribution unit should be well
received as the price of the deal is higher than expected, Goodbody
says. The Irish building-materials company has agreed to sell the
division to Blackstone Group for up to EUR1.64 billion following a
monthslong review of the business. According to Goodbody's
estimates, CRH's European distribution business was valued at
around EUR1.2 billion, suggesting the price agreed includes the
unit's upside potential over the medium term. ADRs of CRH rose 0.8%
to $33.69.
Pearson is set to embrace a full "digital first" strategy in its
higher-education publishing operations as the educational
publishing industry moves to adopt an access model, Citi says. This
shift underscores a fundamental operational evolution at the U.K.
education company perhaps underestimated by the market, Citi says.
"What is changing here is how the content is produced with the
emphasis very much on making the content model more continuous
bringing the educational publishing industry more into line with
mobile apps, professional software or the gaming industry,"
analysts at the bank say. ADRs of Pearson rose 2.2% to $11.
Write to Aisha Al-Muslim at aisha.al-muslim@wsj.com
(END) Dow Jones Newswires
July 16, 2019 19:17 ET (23:17 GMT)
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