U.S.-traded shares of companies based in Latin America declined sharply on Tuesday alongside U.S. markets, as investors remained on edge about the state of the U.S. economy amid concerns about the ongoing credit crisis in the financial sector.
The Bank of New York Latin America ADR Index lost 13.06 points, or 2.6 percent, to 483.89. ADRs, or American Depositary Receipts, are securities designed to allow U.S. investors to trade shares of companies based overseas.
Broader Wall Street indexes were lower, with the Dow Jones industrial average off 100.97 points, closing at 12,402.85. The financial sector was shaken after rumors regarding Lehman Brothers Holdings Inc.'s liquidity followed a Wall Street Journal report that the investment bank was planning to raise cash to shore up its balance sheet.
Meanwhile, Federal Reserve Chairman Ben Bernanke told an audience via satellite at a conference in Barcelona, Spain, that the U.S. economy would improve later in the year, but indicated that interest rates would remain unchanged.
Among Latin American ADRs, Brazilian telecommunications company Vivo Participacoes SA was among the biggest decliners, falling 41 cents, or 6.1 percent, to close at $6.29.
Mexican-based homebuilder Gafisa SA fell $1.25, or 2.9 percent, to $41.61.
Brazilian mobile phone operator TIM Participacoes SA slumped $1.28, or 4.3 percent, to $28.19.
Among the gainers, chemical and mining company Sociedad Quimica y Minera de Chile gained $1.69, or 4.7 percent, to close at $37.49. Earlier in the session, the stock hit an all-time high of $39.18.
Mexican poultry producer Industrias Bachoco SAB de CV added $1.07 or 3.8 percent, to $29.27.
Argentine telecommunication services provider Nortel Inversora SA gained 43 cents, or 2.4 percent, to $18.50.
(This version corrects the change in Sociedad Quimica stock in the 8th paragraph.)
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