Shares of emerging markets food producers fell in intraday trading Friday as the broader markets slid on negative American consumer spending news.
A report from the U.S. government showed consumer spending dropped in February, in part due to the credit crunch. While many food producers usually market their products in their home country, their ADRs tend to follow the performance of U.S. indices. ADR stands for American Depositary Receipt, which is a security designed to allow U.S. investors to trade shares of companies based overseas.
Shares of Russia's Wimm-Bill-Dann Foods OJSC fell even though the company's annual sales beat Wall Street's estimates. Citi Investment Research analyst Marat Ibragimov praised the 40 percent growth in dairy sales even as gross margins were pressured by raw milk inflation.
Ibragimov kept a "Buy" rating and $114 price target, implying he expects the stock to rise about 8 percent over Thursday's $105.50 close.
Shares of Wimm-Bill fell $2.84, or 2.7 percent, to $102.65 in afternoon trading.
Elsewhere in the sector, shares of Mexico's Industrias Bachoco SAB de CV shed 15 cents to $29.20; shares of Brazil's Perdigao SA slid $1.93, or 4 percent, to $46.16; shares of Brazil's Sadia SA declined 78 cents, or 4.2 percent, to $17.67; and shares of Argentina's Cresud Inc. lost 16 cents to $15.56.
The Bank of New York Emerging Markets ADR Index _ which includes shares of companies based in Russia, Mexico, Brazil and more _ lost 0.70 points to 335.42. The Bank of New York Composite ADR Index fell 0.08 points to 168.13 as the U.S. markets fell in afternoon trading.
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