ADR Report: Shares Slightly Lower On Euro Zone Anxiety
05/25/2012| 05:07pm US/Eastern
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By Corrie Driebusch
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International companies trading in New York closed slightly lower Friday, in line with the broader market, on reports of weakness in Spain added to anxiety about the euro zone.
The Bank of New York index of ADRs slipped 0.2% to 113.01.
The head of Spain's Catalonia region said the country's regions are having difficulties financing themselves, which fueled worries of an expanding euro-zone crisis. Spanish officials offered reassurances later, however, saying Catalonia "will honor all of its financial commitments."
Adding to investor jitters, shares of Spain's Bankia were suspended for trading ahead of a board meeting to approve a recapitalization plan.
The news weighed on shares of banks across the region.
Royal Bank of Scotland Group PLC (RBS, RBS.LN) dropped 3.3% to $6.52, Lloyds Banking Group PLC (LYG, LLOY.LN) shed 4.8% to $1.60 and Barclays PLC (BCS, BARC.LN) declined 2% to $11.43.
The European index slipped 0.1% to 104.52.
The Asian index dropped 0.8% at 111.72, weighed down by companies based in China.
Shares of Chinese companies declined following a Bloomberg News report that the country's biggest banks may fall short of loan targets this year for the first time in at least seven years.
Among the decliners were Yanzhou Coal Mining Co. (YZC, K3GD.SG, 1171.HK, 600188.SH), which fell 2.3% to $16.01, and Aluminum Corp. of China Ltd. (ACH, K3HD.SG, 2600.HK, 601600.SH), which ended off 2.4% at $10.07.
The Latin American index, however, rose 0.9% to 304.76 and the emerging markets index edged up 0.1% to 260.15.
Banco Santander Brasil SA (BSBR, SANB4.BR) on Friday denied news reports that it was considering the sale of a minority stake to a competitor in Brazil.
"The bank is not for sale," said a press officer for Santander Brasil, a unit of Spain's Banco Santander SA (STD, SAN.MC).
Shares of Banco Santander Brasil rose 1% to $7.90.
-By Corrie Driebusch, Dow Jones Newswires; 212-416-2143; corrie.driebusch@dowjones.com
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