Emerging Mkts ADRs: Rally On Improved
Global Sentiment
Dow Jones Newswires
NEW YORK -- Emerging market shares trading as American depositary
receipts continue to rally Wednesday, as sentiment improves in markets
world-wide, traders said.
A dealer said the thin volumes that have plagued emerging markets for months
are aiding the rebound.
"Basically there's a lack of liquidity, so markets are really pushing up," he said.
Traders couldn't narrow down to specific causes for the market recovery.
"Everything is well supported, both locally and in ADRs," a dealer said. "Risk
has disminished somewhat."
Brazilian ADRs are climbing solidly. Traders said that market participants
didn't pay too much attention to an address by President Fernando Henrique
Cardoso earlier Wednesday. "I didn't follow it closely, but the overview is
positive," he said.
Brazilian bellwether Telebras rose 6.4% to $76 7/16 at 1515 GMT, while
Telebras HOLDRs advanced 5.3% to $77 1/2.
Oil-related stocks were getting an extra boost Wednesday thanks to a firmer
price of crude. Argentine YPF advanced 5% to 26 1/4 and Mexico's TAMSA
soared 8.9% to $8 7/16. Venezuela's CANTV rose 3.1% to $14 3/8.
Among Mexican issues, Empresas ICA jumped 12% to $6 9/16,
outperforming the country's fellow ADRS. The engineering and construction
company Wednesday said it paid down $150 million in debt. It also said it
received around $300 million from the government from a toll-road rescue plan
and announced it increased tenfold its share buy-back program.
Asian ADRs were mostly higher, although PT Telekomunikasi Indonesia was
flat at $3, despite a stronger close in Jakarta on the back of a sovereign debt
rollover agreement.
-By Margarita Palatnik; 201-938-2226; margarita.palatnik@cor.dowjones.com |
