ADRs End Higher; Infosys Falls
International stocks trading in New York closed higher on Tuesday.
The BNY Mellon index of American depositary receipts improved 0.1% to 143.89. The European index edged up 0.02% to 134.39. The Asian index increased 0.2% to 166.77. The Latin American index rose 0.45% to 238.98. And the emerging-markets index rose 0.35% to 308.05.
Ryanair Holdings PLC (RYAAY, RYA.LN, RY4C.DB) was among those with ADRs that traded actively.
Colombian flag carrier Avianca Holdings SA (AVH, PFAVH.BO), as one of its strategic tasks, has done the preparatory work and hopes to seek permission from its board within two months to proceed with a capital raise, Chief Executive Hernan Rincon says. Avianca had about $305 million in cash at the end of June, not a big cushion for a carrier that operates 180 planes. Avianca, which for months has been trying to cement a partnership with United Continental Holdings Inc. to strengthen its network in the U.S., is studying whether it makes sense to integrate a separate airline in Brazil controlled by its largest shareholder, Mr. Rincon says. ADRs rose 2.5% to $7.10.
RBC Capital Markets downgraded Rio Tinto PLC (RIO, RIO.LN) on caution about China's economic growth outlook, though it still likes the miner and the sector. The Canadian brokerage cut Rio to out-perform from top pick, saying it expects the property market to slow and concerns about growth to rise following the Communist Party leadership conference in November. RBC, however, said it expected the miner to keep paying special dividends after a higher-than-expected cash return. ADRs fell 1.2% to $44.21.
Air Berlin's decision to file for insolvency in Germany could allow rivals like Ryanair to expand, RBC says in a note. "Any slots released at Berlin Tegel or Dusseldorf might present opportunities for new entrants" such as Ryanair, analyst Damian Brewer said. Ryanair, which has been expanding rapidly in Germany, sees Air Berlin's insolvency filing as a set up for a takeover of the German carrier by larger rival Deutsche Lufthansa AG. Such a deal "will be in breach of all known German and EU competition rules," said a Ryanair spokesman. Ryanair's ADRs rose 2% to $119.69, while Deutsche Lufthansa AG, which trades over the counter, rose 4.7% to $24.17.
International stocks trading in New York closed higher on Friday.
The BNY Mellon index of American depositary receipts improved 0.25% to 142.97. The European index edged up 0.04% to 133. The Asian index improved 0.32% to 166.38. The Latin American index rose 1.8% to 241.34. And the emerging-markets index increased 0.78% to 308.57.
Infosys Ltd. (INFY, 500209.BY) was among those with ADRs that traded actively.
ADRs of Alibaba Group Holding Ltd. (BABA) rose 2.2% to $167.50 a day after the company reported fiscal first-quarter earnings nearly doubled from the year earlier as sales surged 56% to $7.4 billion, beating analysts' estimates.
Vishal Sikka resigned Friday as chief executive of Infosys, citing a resistance to change at the company that deteriorated into ugly accusations of impropriety at India's second-largest software and outsourcing company. The Bangalore-based company said Mr. Sikka had the support of the board but had been harassed into leaving by Infosys founder N.R. Narayana Murthy. Mr. Murthy said Friday that he has only been concerned about how the company he founded and left voluntarily in 2014 is managed, and hasn't been trying to get money or control out of Infosys. ADRs fell 7% to $14.79.
(END) Dow Jones Newswires
August 18, 2017 17:21 ET (21:21 GMT)