ADR Report: Shares Rise On Strong Economic Data
04 January 2012 - 9:17AM
Dow Jones News
International companies trading in New York closed higher
Tuesday, in line with the broader market, as better-than-expected
economic data from Asia and Europe lifted investor sentiment.
The Bank of New York index of ADRs rose 3% to 123.25, led higher
by resources stocks.
An official reading of China's purchasing-managers index
released Sunday was stronger than analysts had expected, with
conditions showing growth against a prior contraction.
Mining stocks and commodities are sensitive to signs of growth
in China, which is a big user of natural resources.
Oil futures finished at their highest level in about eight
months Tuesday as heightening tensions between Iran and the West
raised fears of supply disruptions. Chinese oil stocks advanced
along with the price of crude: Sinopec Shanghai Petrochemical Co.
(SHI, K3DD.SG, 600688.SH, 0338.HK) rose 6.1% to $35.10 while
PetroChina Co. (PTR, K3OD.SG, 601857.SH, 0857.HK) increased 5.7% to
$131.38. Hong Kong's CNOOC Ltd. (CEO, 0883.HK) gained 5.7% to
$184.63.
Meanwhile, China Petrochemical Corp. (SNP, 0386.HK, 600028.SH)
struck a multibillion-dollar deal with Devon Energy Corp. (DVN) for
a one-third stake in five U.S. shale oil and gas fields in another
move by a Chinese state-owned firm eager to play a bigger role in
the global rush to tap unconventional fossil fuels. Sinopec shares
rose 6.2% to $111.59.
Overall, the Asian index added 3.3% to 117.01.
Gambling revenue in Macau rose 25% in December from a year
earlier, government statistics showed Tuesday, capping a year of
incredible growth fueled by players from mainland China despite
intensifying concerns about the effects of credit tightening or an
economic slowdown there. Shares of Melco Crown Entertainment Ltd.
(MPEL, 6883.HK) rose 3.4% to $9.95.
The European index closed 2.9% higher at 115.21.
German stocks closed higher after a report showed the number of
jobless in Europe's top economy fell in December by more than
analysts had predicted. Daimler AG (DDAIF, DAI.XE) closed 8.8%
higher at $47.70, while Aixtron SE (AIXG, AIXA.XE) rose 7.7% to
$13.68 and Allianz SE (AZSEY, ALIZF, ALV.XE) gained 6.9% to
$10.12.
French oil company Total SA (TOT. FP.FR) purchased a minority
stake in a swath of Chesapeake Energy Corp.'s (CHK) Ohio shale
discovery for $2.32 billion, The Wall Street Journal reported, in a
deal that shows foreign companies' growing appetite for U.S. oil
and gas assets. Total shares rose 2.7% to $52.47.
Drug maker Teva Pharmaceutical Industries Ltd. (TEVA, TEVA.TV)
doesn't have to be just a growth company or a mature company
focused on returning cash to shareholders, Chairman Phillip Frost
said. Teva is "capable of good growth" for the foreseeable future,
Frost told analysts on a conference call to introduce incoming
Chief Executive Jeremy Levin. But also, "I think that the
possibility to return more to the shareholders during this period
is definitely there," Frost said. Shares rose 6.8% to $43.10.
The Latin American index advanced 3.4% to 342.40 as the emerging
markets index climbed 3.4% to 283.43.
Brazil's oil output reached a record in November of 2.188
million barrels per day, 4.8% higher than in the same month a year
earlier and 4% above the previous month as output capacity
increased, particularly from pre-salt fields, Brazil's oil
regulator ANP said Tuesday. Shares of state-controlled Petroleo
Brasileiro SA (PBR, PETR4.BR), or Petrobras, closed 5.9% higher at
$26.11. Petrobras also reported late Monday a new light oil and
natural gas discovery in the so-called Golfinho Concession in
Espirito Santo state.
Gold rose and silver surged by 5.9% on Tuesday as investors saw
a bargain in the rattled markets as the dollar sank and strength in
global manufacturing activity pointed to steady demand. Shares of
South Africa's miners closed higher: Drdgold Ltd. (DROOY, DRD.JO)
closed 7.4% higher at $5.83; Harmony Gold Mining Co. Ltd. (HMY,
HAR.JO) rose 3.6% to $12.06; Gold Fields Ltd. (GFI, GFI.JO)
increased 3.4% to $15.77; and AngloGold Ashanti Ltd. (AU, ANG.JO)
gained 3.3% to $43.85.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;
nathalie.tadena@dowjones.com