An index of emerging market ADRs rose in afternoon trading Wednesday, pulled higher by banking stocks after governments worldwide doled out cash to assuage beleaguered credit markets.
The Bank of New York Emerging Markets ADR Index _ which includes shares of companies based in Greece, China, Turkey and more _ added 8.73 points, or 2.3 percent, to 387.48. ADR stands for American Depositary Receipt, which is a security designed to allow U.S. investors to trade shares of companies based overseas.
On Wednesday the European Central Bank joined the U.S. Federal Reserve, the Bank of England, the Bank of Canada and the Swiss National Bank in releasing billions of dollars to lenders as the five worked to improve conditions that have lambasted the global credit market.
Brazil's Banco Itau Holding Financeira SA rose 62 cents, or 2.3 percent, to $27.81.
India's ICICI Bank Ltd. increased $1.14 to $64.23.
South Korea's Kookmin Bank added $2.76, or 3.8 percent, to $75.06.
Woori Finance Holdings Co. Ltd., also based in South Korea, gained 86 cents to $58.21.
Russia's Wimm-Bill-Dann Foods OJSC helped pull food producer ADRs higher after a Citi Investment Research analyst said the company's year-to-date results should reveal sound sales growth and resilient margin growth.
Wimm-Bill-Dann rose $4.95, or 4.3 percent, to $119.55.
Russia's Perdigao SA gained 89 cents to $51.56.
Sadia SA, also based in Brazil, added $1.56, or 2.5 percent, to $63.91.
Oil ADRs rose sharply as the price of a barrel of light, sweet crude oil jumped $4.37 to settle at $94.39 in afternoon trading on the Nymex.
Argentina's Petrobras Energia Participaciones SA rose 54 cents, or 4.5 percent, to $12.45.
Petroleo Brasileiro SA, owned by the government of Brazil, gained $6.38, or 7.2 percent, to $95.01. On Tuesday the company said it opened a new offshore platform that will produce 180,000 barrels of oil per day.
Airline ADRs on the index mostly fell, however, after a Morgan Stanley analyst said a drop in November air traffic at LAN Airlines SA compared to the average of the previous three months may continue in the future. Also, the profitability of airline operators is closely linked to jet-fuel costs.
Chile's LAN fell 43 cents, or 3 percent, to $13.61.
China Eastern Airlines Corp. Ltd. fell $2.26, or 2.4 percent, to $93.74.
And Brazil's TAM SA shed 58 cents, or 2.2 percent, to $25.90.
The Bank of New York Composite ADR Index gained 3.41 points to 196.95 as the U.S. markets fell in afternoon trading.
Terms & Conditions
RSS Headlines
Fool UK