An index of emerging markets ADRs jumped in afternoon trading Tuesday as the U.S. markets rallied on news two large banks will sell stock to boost liquidity.
The Bank of New York Emerging Markets ADR Index _ which includes shares of companies based in China, Mexico, Brazil and more _ rose 10.04 points to 345.86. ADR stands for American Depositary Receipt, which is a security designed to allow U.S. investors to trade shares of companies based overseas.
Lehman Brothers and UBS said Tuesday they would issue stock, a move that reassured investors on the first day of the fiscal second quarter. The news helped lift the emerging markets banking sector.
Shares of South Korea's Kookmin Bank gained $5.17, or 9 percent, to $61.27.
Shares of Woori Finance Holdings Co. Ltd., also based in South Korea, rose $4.67, or 9 percent, to $56.72.
India's ICICI Bank Ltd. shares increased $2.01, or 5.3 percent, to $40.20.
Shares of Brazil's Uniao de Bancos Brasileiros SA jumped $5.69, or 5 percent, to $122.45.
South Korea's Shinhan Financial Group Co. Ltd. shares added $6.42, or 6.1 percent, to $111.99.
Bucking the trend, shares of Banco de Chile slid 46 cents to $52.72 and shares of Chile's CorpBanca SA fell 15 cents to $34.78.
The Bank of New York Composite ADR Index gained 4.75 points, or 2.8 percent, to 173.13 as the U.S. markets surged in afternoon trading.
Terms & Conditions
RSS Headlines
Fool UK