ADR REPORT: Shares Climb On Strong Start To Earnings Season

By Shara Tibken Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--International companies trading in New York ended broadly higher Tuesday after better-than-expected earnings from early bellwethers boosted sentiment. Upbeat quarterly results from aluminium giant Alcoa Inc. (AA) and railroad operator CSX Corp. (CSX) helped assuage fears the recent rally was premature and that economic weakness would push corporate earnings below forecasts. The earnings also bolstered hopes that second-quarter results will show a strengthening business environment, though one still vulnerable to global weakness. The Bank of New York index of ADRs rose 1.7% to 122.57. Materials and mining companies traded higher, boosted by Alcoa's strong report. Gainers included Irish building materials company CRH PLC (CRH, CRH.DB), up 4.4% at $21.22, and Luxembourg-based steel giant ArcelorMittal SA (MT, MT.AE), up 3.2% at $30.30. Gold miners also gained as gold futures rallied on improving economic sentiment. Channel Islands-based Randgold Resources Ltd. (GOLD, RRS.LN) gained 1.4% to $93.23, and South Africa-based DRDGold Ltd. (DROOY, DRD.JO) advanced 1.4% to $4.30. The European index climbed 2.2% to 112.26. Lloyds Banking Group PLC (LYG, LLOY.LN) of the U.K. has sold bonds worth nearly GBP550 million backed by loans to U.K. small and medium-size enterprises, in the latest sign that the market for bonds backed by loan repayments is recovering. Its shares increased 3.2% to $3.89. Meanwhile, other European banks also traded higher along with the broader market. HSBC Holdings PLC (HBC, 0005.HK, HSBA.LN) Chairman Stephen Green Tuesday said the financial crisis isn't over yet, though "we're on our way out," and suggested that markets shouldn't be complacent about the possibility of future shocks. Shares of U.K.-based HSBC gained 2% to $48.73 and Barclays PLC (BCS, BARC.LN) climbed 4.7% to $19.04. Goldman Sachs upgraded its rating on Anglo-Dutch consumer-goods giant Unilever NV (UN, UNA.AE) to buy from neutral as it said it believes the restructuring phase is coming to and end and the company is set for growth. The firm added the market is underestimating the returns and growth potential from Unilever's exposure to emerging markets and a reduction in restructuring spending. Its shares increased 2.8% to $29.65. The Latin-American index rose 1.1% to 356.09. Brazilian airline GOL Linhas Aereas Inteligentes S.A. (GOL, GOLL4.BR) launched a $300 million, 10-year bond deal Tuesday, offering investors a yield of 9.5%, according to a person close to the sale. Managers of the sale received around $900 million in orders for the securities, allowing GOL to pay a yield at the lower end of the guidance given earlier in the day for yields as high as 9.625%. Its shares advanced 2.4% to $13.37. Other Brazilian stocks also gained, including pulp and paper company Fibria Celulose SA (FBR, FIBR3.BR), up 3% at $14.93, and Brazilian telecom company Tele Norte Leste Participacoes SA (TNE, TNLP4.BR), up 3% at $15.97. Chilean stocks also ended the session higher, with Banco de Chile (BCH, CHILE.SN) jumping 6.6% to $70 and Banco Santander-Chile (SAN, BSANTANDE.SN) up 4.3% at $76.66. The Asian index increased 0.83% to 120.15. Shares of Baidu Inc. (BIDU) climbed 5.2% to $74.38 after First Global started coverage of the Chinese Internet company with an outperform rating, saying strong growth in Internet usage, market leadership and proactive strategies will drive robust earnings growth. KB Financial Group Inc. (KB, 105560.SE), long considered a potential suitor for Woori Finance Holdings Co. (WF, 053000.SE), Tuesday damped speculation on any such move after its new chairman and chief ruled out acquisitions in the near term and said the company must first get back into shape by improving productivity and cutting costs. Shares of South Korea's largest financial holding company by assets ended up 3% at $43.24 after Euh Yoon-dae's comments, as investors were relieved by the company's lack of interest in an expensive acquisition for now. Woori, meanwhile, slipped 1 cent to $37.62. The company plans to raise between $500 million and $700 million by selling 5.5-year dollar bonds. Mizuho Financial Group Inc. (MFG, 8411.TO) Tuesday set a price of Y130 per share for its planned public offering later this month in Asia, in a deal that could raise up to Y751.6 billion, or about $8.5 billion. Shares of the Japanese bank slid 1.6% to $3.13. The emerging-markets index grew 0.79% to 295.20. Infosys Technologies Ltd. (INFY, 500209.BY) reported a 2.4% fall in its first-quarter net profit, missing analysts' expectations, but raised its outlook for the current fiscal year, reflecting the Indian software services exporter's confidence in a sustained recovery in demand for outsourcing services. Its shares declined 5.7% to $59.43. -By Shara Tibken, Dow Jones Newswires; 212-416-2189; shara.tibken@dowjones.com (END) Dow Jones Newswires July 13, 2010 16:28 ET (20:28 GMT)