ADR Report: Shares Close Mixed After Late Bank, BP Rally

By Emily Glazer Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--International companies trading in New York had a mixed close Thursday as stocks pared losses while financials recovered ground. Financial stocks, which are particularly susceptible to economic headwinds, fell for much of the session before some swung to gains as the U.S. Senate finally passed the financial-overhaul bill, sending it to President Barack Obama for his signature. Late-day news that Goldman Sachs Group Inc. (GS) had reached a settlement with the Securities and Exchange Commission also helped the rally right before the close. The Bank of New York index of ADRs gained 0.5% to 123.46. BP PLC's (BP, BP.LN) U.S. shares jumped late Thursday afternoon after the oil giant said the flow of oil into the Gulf of Mexico stopped during a test to see whether a recently placed cap on the well can entirely seal it off. BP's American depositary shares closed up 7.6% at $38.92, the stock's highest level since June 4. After the stock hit a 14-year low in late June at $26.75, it has recovered 36% of its slide since the April 20 explosion of the Deepwater Horizon rig. The European index increased 1.2% to 113.99. GlaxoSmithKline PLC (GSK, GSK.LN) said it will record a charge of GBP1.57 billion ($2.4 billion) in the second quarter to cover the cost of settling lawsuits involving the diabetes drug Avandia, the antidepressant Paxil and a U.S. government investigation of a Glaxo factory in Puerto Rico. Still, Glaxo appears to have settled most of the Avandia litigation for less than GBP1 billion--a lower sum than some analysts had predicted the company might need to pay. Shares rose 2.4% to $37.21. Greece's fourth-largest lender by assets, Piraeus Bank SA (TPEIR.AT), said it will offer EUR701 million ($903.7 million) to acquire controlling stakes in two Greek government-controlled banks. The news boosted shares of National Bank of Greece SA (NBG, ETE.AT) 6.2%, or 16 cents, to $2.76. European Commission and British American Tobacco PLC (BTI, BATS.LN) signed an agreement aimed at tackling the illegal tobacco trade, which costs the European Union an estimated EUR10 billion ($12.89 billion) annually in unpaid taxes. Shares gained 2.2% to $70.66. Swiss agribusiness company Syngenta AG (SYT, SYNN.VX) was raised to conviction buy from neutral by Goldman Sachs. Shares rose 2.3% to $47.32. The Asian index slipped 0.6% to 119.52. Japanese auto maker Nissan Motor Co. (NSANY, 7201.TO) temporarily stopped production at its Smyrna, Tenn., and Canton, Miss., plants because of shortages of parts from Mexico. The two plants produce the Altima sedan. Shares slipped 1.7% to $14.80. Japanese provider of telecommunications services Nippon Telegraph & Telephone Corp. (NTT, 9432.TO) said it has reached an agreement to buy Dimension Data Holdings PLC (DDT.JO), a South African technology-services provider, for GBP2.1 billion in cash, or about $3.2 billion, as part of an overseas expansion for the Japanese telecommunication giant. Nippon's shares fell 1.8% to $20.97. The Latin American index dropped 0.6% to 353.27. Portugal Telecom SGPS SA's (PT, PTC.LB) board decided to extend its meeting to Friday to decide whether to accept Telefonica SA's (TEF, TEF.MC) offer to buy the Portuguese company's stake in Brazil's Vivo Participacoes SA (VIV, VIVO4.BR), a person close to the situation said. The Brazilian telecommunications operator's shares dropped 2.7% to $26.22, while Portugal Telecom rose 3% to $10.90 and Telefonica, of Spain, climbed 1.8% to $64.20. Brazil's airlines rose, with TAM SA (TAM, TAMM4.BR) gaining 3.6% to $16.43 and Gol Linhas Aereas Inteligentes SA (GOL, GOLL4.BR) climbing 2% to $13.91. The emerging-markets index slid 0.7% to 292.18. WuXi PharmaTech (Cayman) Inc. (WX) projected second-quarter earnings above analysts' expectations as the contract-research firm sees higher demand, with biotechnology and medical-device companies increasingly outsourcing research-and-development efforts. Shares gained 2.4% to $16.04. -By Emily Glazer, Dow Jones Newswires; 212-416-2913; emily.glazer@dowjones.com (END) Dow Jones Newswires July 15, 2010 17:26 ET (21:26 GMT)