ADRs in Focus: Latin American airline shares off on oil
By
Associated Press
April 22, 2008
|
Shares of Latin American airline stocks traded on U.S. markets fell sharply on Tuesday after the price of oil surged into record territory.
On the New York Mercantile exchange, light, sweet crude for May delivery rose to a record of $119.90 before retreating to settle at $119.37 a barrel.
ADRs of Latin American airline stocks reacted negatively to the spike. Shares of airline companies often move opposite the price of oil because fuel represents one of their biggest costs.
Brazilian airline GOL Linhas Aereas Inteligentes SA lost 71 cents, or 4.6 percent, to $14.67. Tam SA, also based in Brazil, lost 98 cents, or 4.5 percent, to $20.81. Santiago, Chile-based Lan Airlines SA shed 40 cents, or 2.9 percent, to $13.57.
The broader ADR market was also lower on Tuesday. The Bank of New York Latin America ADR index lost 4.93 points to 467.59.
ADRs, or American Depositary Receipts, are securities that allow foreign companies to be traded on U.S. markets.
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