Emerging Mkts ADRs Mixed; Mexico's Telmex Bond Eyed
NEW YORK -- Emerging market shares trading as American depositary receipts were mixed in thin trading Thursday mid-morning.
The highlight of session will be the pricing of Mexico's Telmex $750 million convertible bond Thursday evening, traders said. The issue will be jointly-managed by J.P. Morgan and Salomon Smith Barney.
The performance of the company's ADRs will be key since the pricing of the 5-year convertible bond will be based on an expected 20% to 25% premium off the closing price of the receipts, traders said.
Telmex shares weren't open for trading Thursday morning ahead of details to be released on their bond issue, traders said.
Telmex ADRs closed Wednesday 5/16 higher at $78 15/16.
Once trading resumes, the receipts are expected to weaken in price, market participants said.
"People who buy the bond obviously want to sell the stock and hedge some of their risk," said Ray Fernandez, head of equity trading of the Americas at Bank Paribas in New York.
Meanwhile, among other Mexican ADRs, Grupo Televisa was up 13/16 to $42 7/8.
The rest of the market was extremely quiet, as Brazil's financial markets were closed Thursday due to a religious holiday.
Telebras holders were down 1/16 to $84 3/16, while Aracruz Celulose inched up 1/8 to $19 5/16.
Asian ADRs moved higher following a rebound in home markets overnight.
Indonesia's Telekomunikasi gained 1/2 to $9 3/4 and China's Telecom was 1 1/4 to $44 3/8.
Around 1500 GMT, the Bank of New York Emerging Markets ADR index was up 1.0% at 113.43 points.
-By Angela Pruitt;201-938-2269;angela.pruitt@dowjones.com
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