American Depositary Receipts of construction companies and homebuilders in emerging markets fell Tuesday after an index showed pending U.S. home sales slid in February to their lowest reading ever.
While many emerging markets ADRs do not operate in the U.S., their stock prices tend to be linked with developments in the United States. ADR stands for American Depositary Receipt, which is a security designed to allow U.S. investors to trade shares of companies based overseas.
The U.S. National Association of Realtors said Tuesday that its seasonally adjusted index of pending sales for existing homes fell to 84.6 from January's upwardly revised reading of 86.2. The index measured 107.6 in February 2007.
During afternoon trading, shares of Mexico's Vitro SA de CV fell 13 cents, or 2.4 percent, to $5.36. Shares of Cemex SAB de CV, also based in Mexico, shed 53 cents to $26.83. Shares of Empresas ICA SAB de CV, a Mexican construction company, lost 12 cents to $24.49. Shares of Homex Development Corp., which makes homes in Mexico, dipped 27 cents to $61.99, and shares of Brazil's Gafisa SA decreased 33 cents to $37.57.
The Bank of New York Emerging Markets ADR Index _ which includes shares of companies based in China, Mexico, Brazil and more _ lost 1.99 points to 356.75. The Bank of New York Composite ADR Index slid 1.06 points to 176.76 as the U.S. markets fell in afternoon trading.
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