DR Market Summary

ADR Report: Shares Lower As Spain Worries Weigh On Financials

May 30, 2012

NEW YORK (Dow Jones)--International companies trading in New York closed sharply lower Wednesday, in line with the broader market, as Spain's financial crisis deepened, causing greater euro-zone concern.

The Bank of New York index of ADRs tumbled 2.3% to 111.49.

Spain's banks saw an erosion in deposits, intensifying that country's crisis. Retail and corporate deposits in Spanish banks fell to their lowest level since the euro-zone debt crisis began, according to data published by the European Central Bank.

Shares of Spanish banks fell, with Banco Santander SA (STD, SAN.MC) dropping 2.6% to $5.25 and Banco Bilbao Vizcaya Argentaria SA (BBVA, BBVA.MC) ending off 3.1% at $5.63.

Other financials in the region also traded down, including Credit Agricole SA (CRARY, ACA.FR), off 3.8% at $1.79, and BNP Paribas SA (BNPQY, BNP.FR), off 3% at $15.31.

The European index declined 2.4% to 102.45.

National Bank of Greece SA (NBG, ETE.AT), the country's largest lender by assets, Wednesday announced more than half a billion euros in losses for the first quarter on account of rising bad loans, but sought to ease investor concerns about its cash position in the face of recent deposit withdrawals. Shares of the bank tumbled 5.3% to $1.44.

A Berlin-based district court said Wednesday it has rejected a request from Veolia Environnement SA (VE, VIE.FR) for a temporary injunction on a transaction in which German peer RWE AG (RWEOY, WE.XE) plans to sell its minority stake in a water utility to the city-state of Berlin. Shares of Veolia Environnement lost 2.8% to $11.47 and shares of RWE AG ended off 2.1% at $36.43.

Mercedes-Benz has furloughed more than 10%, or 1,500, of its Brazilian workforce in response to a drop in demand for trucks and buses, the Financial Times reported Wednesday, citing the company. Shares of Daimler AG (DDAIF, DA.XE), which owns the auto maker, dropped 3.9% to $46.98.

The Asian index fell 2.2% to 111.49.

Perfect World Co.'s (PWRD) first-quarter earnings fell 21% as the Chinese online-game developer reported flat revenue and higher expenses. Shares sank 5.9% to $10.82 as the company issued a downbeat revenue view for the current quarter.

The Latin American index ended off 2.1% at 303.02.

Royal KPN NV (KKPNY, KPN.AE) reiterated Wednesday that America Movil SAB's (AMX, AMOV, AMX.MX) partial tender offer undervalues Royal KPN significantly.

Shares of America Movil lost 1.4% to $23.99.

The emerging markets index closed 2.2% lower at 259.31.

Tata Motors Ltd. (TTM, 500570.BY) Tuesday topped market estimates with a more than twofold rise in quarterly profit and said it plans to merge its U.K.-based Jaguar and Land Rover businesses. Profit margins disappointed some analysts though, and shares fell 9.9% to $20.84.

-By Corrie Driebusch, Dow Jones Newswires; 212-416-2143; corrie.driebusch@dowjones.com

(END) Dow Jones Newswires

May 30, 2012 17:10 ET (21:10 GMT)

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