ADR Report: Shares End Higher After US, European Markets Climb
08/06/2012| 05:42pm US/Eastern
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By Mia Lamar
Shares of international companies trading in New York closed higher Monday after both U.S. and European stock markets climbed to multi-month highs on expectations that policy makers will take action to contain the euro-zone debt crisis.
The Bank of New York index of ADRs rose 0.6% to 112.59, helped higher by a string of gains for financial shares. France's BNP Paribas SA (BNPQY, BNP.FR) jumped 4.4% to $20.57, Spain's Banco Santander SA (SAN, SAN.MC) rose 3.3% to $6.31 and the U.K.'s Barclays Plc (BCS, BARC.LN) added 2.7% to $10.96.
Banks had also paced Friday's gains after investors reassessed comments by European Central Bank President Mario Draghi. The ECB chief last week laid out a plan that could see the bank intervene to bring down borrowing costs for countries such as Spain and Italy, but only after they request help from the region's rescue funds.
The European index rose 0.6% to 114.63.
German insurer Allianz SE (AZSEY, ALV.XE) also traded higher, gaining 3% to $10.46, after J.P. Morgan analysts raised their rating on the stock to overweight from neutral. Earnings from all of Allianz's divisions are either in line or beat targets, the brokerage noted, adding Allianz's solvency is robust.
The Asian index rose 0.5% to 119.36.
Shares of Changyou.com Ltd. (CYOU, K3JD.SG) soared 19% to $23.00 after second-quarter results from the Chinese online game developer topped expectations.
The company also said its majority-owned web games subsidiary 7Road.com Ltd. plans to file a request with the U.S. Securities and Exchange Commission for a possible initial public offering of American depositary shares.
Solar stocks ended roundly higher, led by a 10% gain to $2.21 for JinkoSolar Holding Co. (>> JinkoSolar Holding Co., Ltd.). Shares of fellow solar-panel maker LDK Solar Co. (>> LDK Solar Co., Ltd (ADR)) also rose, adding 7.6% to $1.42, while Trina Solar Ltd. (TSL, K3KD.SG) gained 9.6% to $4.67.
The Latin American index rose 0.9% to 324.22 and the emerging-markets index rose 0.9% to 275.17.
Brazilian steelmaker Companhia Siderurgica Nacional (SID, CSNA3.BR) was the country's biggest gainer, adding 8.6% to $5.54. Fellow steelmaker Gerdau SA (GGB, GGBR3.BR, GGBR4.BR) also ended higher, adding 2.7% to $21.75.
The region's financial stocks followed their overseas peers higher. Argentina's Banco Macro SA (BMA, BMA.BA) added 4.9% to $12.42 while Brazil's Itau Unibanco Holding S.A. (ITUB, ITUB4.BR) gained 2.1% to $16.27.
Write to Mia Lamar at mia.lamar@dowjones.com.
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