ADRs in Focus: Latin American aviation ADRs rise

Shares of Latin American aviation companies trading on U.S. exchanges headed higher on Tuesday as crude prices fell sharply for the second straight day.

Light, sweet crude for August delivery fell $4.94 a barrel to $136.43 after sinking below $136 earlier in the trading session on the New York Mercantile Exchange. Oil prices have shed about $10 this week.

Shares of airlines often trade opposite the price of crude because fuel represents on of the industry's biggest costs.

ADRs of Chile's LAN Airlines SA jumped 46 cents, or 4.9 percent, to $9.88. Brazil's TAM SA added 69 cents, or 4.5 percent, to $16. GOL Linhas Aereas Inteligentes SA rose 11 cents to $8.73.

Meanwhile, Brazilian airline manufacturer Empresa Brasileira de Aeronautica SA, or Embraer, advanced $2.56, or 10.2 percent, to $27.62. Goldman Sachs analyst Daniela Bretthauer said in a client note the company's second-quarter aircraft deliveries were "strong," but said she was concerned about a potential slowdown in demand as airlines grapple with higher fuel prices.

On Monday, Embraer said it delivered 52 aircraft during the second quarter and 97 for the year.

Latin American airport operators also advanced. Grupo Aeroportuario Del Sureste SA de CV rose 85 cents to $48.48. Grupo Aeroportuario Centro Norte SAB de CV gained 30 cents to $17.31. Both companies are based in Mexico.

The Bank of New York Mellon Latin America ADR Index slipped 10 points, or 2.3 percent, to 416.54, while the Bank of New York Mellon Composite ADR Index shed 1.20 points to 161.37.

ADRs, or American Depositary Receipts, are securities designed to allow U.S. investors to trade shares of overseas companies.