ADRs in Focus: Emerging markets airlines tumble

ADRs of airlines based in emerging markets tumbled in afternoon trading Friday as crude oil prices rallied to fresh highs and the U.S. markets dropped on the latest round of unemployment data.

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. Labor Department said Friday the number of unemployment claims rose in May to levels not seen in more than 25 years. Elsewhere, crude oil prices resumed their climb on the New York Mercantile Exchange and set a new record above $137 a barrel.

The Dow Jones industrial average fell more than 300 points in afternoon trading.

Emerging markets airlines did not fare much better, with ADRs of China Southern Airlines Co. losing $2.19, or 7.3 percent, to $27.94.

Shares of China Eastern Airlines Corp. slipped $2.13, or 5.1 percent, to $39.34, and shares of Chile's LAN Airlines SA fell 37 cents, or 3.1 percent, to $11.59.

Shares of Brazil's GOL Linhas Areas Inteligentes SA decreased 57 cents, or 3.9 percent, to $14.03, and shares of Brazil's TAM SA lost 77 cents, or 3.8 percent, to $19.32.

The Bank of New York Emerging Markets ADR Index _ which includes shares of companies based in China, Chile, Brazil and elsewhere _ lost 8.96 points, or 2.4 percent, to 371.86. The Bank of New York Composite ADR Index fell 3.98 point, or 2.2 percent, to 177.94.