ADRs in Focus: Asian airlines down

Asian airline ADRs declined in afternoon trading on Tuesday, as investors remained uneasy about high oil prices.

China Southern Airlines Co. declined $1.03, or 4.6 percent, to $20.94, and China Eastern Airlines Corp. slipped $1.04, or 3.1 percent, to $32.06, as oil prices climbed higher and concerns strengthened about overseas supply.

China Southern's stock hit a 52-week low of $20.68, and China Eastern's stock hit a 52-week low of $31.73.

Light, sweet crude for August delivery rose 26 cents to settle at $137 a barrel on the New York Mercantile Exchange. Prices fluctuated between gains and losses for most of the day.

Fuel is one of the largest costs for an airline, and many investors have been worried that fare increases and other cost-cutting measures cannot fully pull the industry out of its troubles.

In afternoon trading, the Bank of New York Asia ADR index slipped 0.78 points to 152.36. The index is down 8.6 percent so far this year. ADRs, or American Depositary Receipts, are securities designed to allow U.S. investors to trade shares of overseas companies.

The broader Bank of New York Composite ADR Index fell 0.29 points to 168.33 as U.S. markets fell in volatile afternoon trading.