ADR Report: Shares Fall On Renewed Concerns Over Greece
05/23/2012| 04:45pm US/Eastern
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By Corrie Driebusch
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International companies trading in New York fell Wednesday, in line with the broader market, as renewed concern over Greece exiting the euro zone weighed on bank and oil stocks throughout Europe.
The Bank of New York index of ADRs tumbled 0.9% to 113.44 following comments by former Greek Prime Minister Lucas Papademos that Greece is making contingency plans for an exit from the euro. He later clarified his comments saying he wasn't aware of any specific preparations.
Shares of banks throughout the region slumped on the fear that an exit by Greece would spill over to other European countries and their financial institutions.
Spanish banks Banco Santander SA (STD, SAN.MC) fell 1.2% to $5.72 and Banco Bilbao Vizcaya Argentaria SA (BBVA, BBVA.MC) slipped 2.2% to $6.14.
Credit Agricole SA (CRARY, ACA.FR) dropped 4.6% to $1.85 and ING Groep NV (ING, INGA.AE) lost 2.4% to $6.02.
The European index ended 1.1% lower at 104.63.
Royal Philips Electronics NV (PHG, PHIA.AE) shares fell following an analyst comment on a speech by Chief Executive Frans van Houten at an investors' meeting Tuesday. UBS said in its opinion van Houten "played down near term profit expectations in general and expressed more caution in terms of both Healthcare and Consumer Lifestyle. A Philip's representative said the phrase "talking down expectations" was incorrect and the company reiterated its midterm targets, but shares still dropped 4.5% to $18.37.
The Asian index shed 0.8% to 113.25.
Acorn International Inc. (ATV) reported a decline in revenues and profit for the first quarter, primarily due to fewer mobile phone sales, a decrease in existing phone model sales and the delayed launch of new feature phones. Shares of the company tumbled 7.8% to $3.80.
The Latin American index dropped 0.2% to 303.56 and the emerging markets index lost 0.4% to 261.51.
The price of crude oil fell to a fresh seven-month low, breaking below $90 a barrel, on a rise in supply and a drop in demand.
Shares of oil companies fell, too, with Petroleo Brasileiro (PBR, PETR3.BR, PETR4.BR), or Petrobras, declining 1% to $19.67.
-By Corrie Driebusch, Dow Jones Newswires; 212-416-2143; corrie.driebusch@dowjones.com
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