Emerging Mkts ADRs: Slow Session, Prices Flat To Higher
Dow Jones Newswires
NEW YORK -- Emerging market shares trading as American depositary receipts are slightly
higher Wednesday, while volumes remain extremely low, traders said.
Dealers said that after an initial jump following the Dow Jones Industrial Average, ADRs were
coming off, with profit-taking still present.
Investors have been on the sidelines all week, waiting for the Mexican budget to be announced,
and more importantly, for a rescue package from multilateral lenders for Brazil, traders said.
Also on the agenda is a decision Wednesday on Brazilian interest rates by monetary authorities.
"We're still expecting an IMF package for Brazil this week, at between $35 billion and $40
billion," a dealer said. "And Brazil today isn't expected to lower (rates) aggressively because they
still have to watch reserve levels."
He added that if Brazil doesn't lower rates at all, it could lead to further profit-taking.
Telebras, whose spinoffs will start trading Monday on the New York Stock Exchange, was up
marginally, advancing 5/16 to $83 7/8 at 1600 GMT. Telebras HOLDRs were flat at $84.
Among second-tier Brazilian ADRs, Globocabo continued its slow and steady ascent, up 2.5%
to $2 9/16, setting a year-to-date high.
Among Mexican ADRs, Grupo Televisa was trading higher, after it said Tuesday that it will
restructure about $1.2 billion in debt over two to five years. At 1610 GMT Televisa ADRs were
up 0.9% to $28 7/16.
"The bottom line is that the market took the restructuring positively," a trader said. "The market
kind of expected it, but it eliminates the uncertainty that they may have to sell shares to cover their
debt."
-By Margarita Palatnik; 201-938-2226; margarita.palatnik@cor.dowjones.com |
