DR Market Summary

ADR Report: Shares Drop On US Consumer Confidence, Home Prices

Mar 27, 2012

NEW YORK (Dow Jones)--Shares of international companies trading in New York closed lower Tuesday, falling with the broader market as U.S. consumer-confidence and home-price data met expectations.

The Bank of New York index of American depositary receipts dropped 0.9% to 131.53.

The European index fell 1.3% to 120.40. Most European stock markets ended the day lower as U.S. consumer confidence dropped in March from February's robust level.

ADRs of European financial stocks mostly dropped, including a decline for Credit Suisse Group AG (CS), Lloyds Banking Group PLC (LYG), Banco Santander SA (STD) and UBS AG (UBS).

Shares of HSBC Holdings PLC (HBC) inched up as the U.K.-based banking company said it plans to pull out of Slovakia by the end of the third quarter, the latest move in the company's effort to prune its global operations and increase profitability.

The Latin American index fell 0.6% to 375.75. Telecom shares were broadly lower, led by a 2.9% decline for Oi SA Pref (BTM).

Financial stocks were mixed, with Banco Macro SA (BMA) and Banco de Chile (BCH) trading lower but BBVA Banco Frances SA (BFR) and BanColombia SA (CIB) ending the day higher.

Shares of Vale SA (VALE) grew 0.3% despite a Brazilian newspaper report that said Swiss tax authorities are charging Vale an extra $233 million in taxes due to the company's alleged breaking of a tax exemption accord signed in 2006.

Brazilian no-frills airline Gol Linhas Aereas Inteligentes SA (GOL) ended the day up 2.1%, after it reported fourth-quarter net profit jumped 19.5% though operating expenses also increased.

The emerging-markets index dropped 0.4% to 309.83.

Brazilian steelmaker Companhia Siderurgica Nacional SA (SID) warned it was "very worried" about Brazil's weak industrial performance in the first quarter, sending shares down 2.5%. The company late Monday reported a 81% jump in fourth-quarter profit on higher sales and prices for iron ore, which offset a reduction in prices of steel.

The news also dragged peer Gerdau SA (GGB) down 2.9%.

Gold futures ended nearly unchanged Tuesday and could be set for more turbulence in the coming days as fund managers adjust their books ahead of reporting their first-quarter performance. South African miners traded lower, including a 1.2% decline for AngloGold Ashanti Ltd. (AU) and a 0.7% drop for Gold Fields Ltd. (GFI).

The Asian index, the day's best performer, inched down to 130.23. South Korean financials closed lower, including a 2% drop for Shinhan Financial Group Co. (SHG) and KB Financial Group Inc.'s (KB) 1.5% decline.

Hitachi Ltd. (HIT) inched up 0.1% as the Japanese electronic manufacturer confirmed it plans to cut costs to compete with more-profitable global rivals such as General Electric Co. (GE).

-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com

(END) Dow Jones Newswires

March 27, 2012 16:46 ET (20:46 GMT)

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