ADR Report-ADRs flat but CNOOC, Chinese telecoms jump


NEW YORK, June 22 (Reuters) - Overseas shares traded in the United States were flat on Wednesday, weighed down by Latin American stocks and automakers, but shares of Chinese companies jumped.

The Bank of New York's index of leading ADRs was flat at a time when the 30-share Dow Jones industrial average, was up 0.1 percent at 10,614.71.

Shares of Europe's largest software maker SAP rose 2.8 percent to $43.46 after an analyst said the company's lead was widening over its rivals.

The Bank of New York's index of leading European ADRs was flat as European automakers slid after Ford Motor Co. issued a profit warning.

Italian carmaker Fiat slid 2.25 percent to $7.39.

Receipts with the Bank of New York's index of leading Latin American ADRs slipped 0.4 percent at 151.58.

Among Latin American stocks, Brazilian shares were weighed down by new allegations of political corruption. Telemig Celular was off 1.1 percent at $33.76.

Listings of Chinese companies, however, were some of the biggest movers on Wednesday. The Bank of New York's index of leading Asian ADRs was up 0.2 percent at 110.86.


A top executive at China's largest offshore oil and natural gas producer CNOOC Ltd. said on Wednesday that its board has not yet made a decision on whether it will challenge Chevron Corp.'s $16 billion bid for rival Unocal Corp. .

The company, nearly two-thirds of which is controlled by the Chinese government, said it was responding to market worries over the potential cost of the deal. A person close to the process told Reuters the company has tentatively decided to bid for Unocal [ID:nSP308544]. If CNOOC were to acquire Unocal, it would be the biggest-ever overseas acquisition by a Chinese firm.

CNOOC shares were up 1.9 percent on Wednesday at $53.69.


Shares of China Unicom and China Mobile jumped on Wednesday as investors felt the company was benefiting from delays in third-generation (3G) licensing, designed to upgrade China's cellphone networks.

An analyst raised his target price for the Hong Kong-listed shares of China Mobile, saying that the world's biggest cellular carrier was benefiting from delays in awarding the licenses. China Mobile shares rose 3.1 percent to $19.13 [ID:nHKG132665].

China Unicom may also be benefiting, since industry restructuring which is supposed to occur in conjunction with the licensing would likely split up the company, observers said. China Unicom shares rose 4.3 percent to $8.44.

China Telecom was up 1.2 percent at $34.99, while China Netcom advanced 2.5 percent to $28.46.



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