ADR Report: Shares Close Mostly Flat On Cautious Outlook

By Victoria Finkle Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--International companies trading in New York ended close to flat Wednesday, following a fitful session during which the U.S. Federal Reserve kept interest rates low and took a cautious stance on the economic outlook. The Bank of New York index of ADRs rose 0.4% to 120.01. The mining sector traded higher on news that Australian prime minister Kevin Rudd will be challenged by Deputy Prime Minister Julia Gillard in a vote Thursday morning. Rudd had recently proposed a super-profits tax on the Australian mining sector. BHP Billiton Ltd. (BHP, BHP.AU) rose 2.1% to $69.61 and Rio Tinto PLC (RTP, RIO.LN) climbed 2.3% to $51.05. Labor unrest in China continued to stall auto makers. Honda Motor Co. (HMC, 7267.TO) halted production Wednesday at two car-assembly plants in southern China after a strike hit a parts supplier. Nissan Motor Co. (NSANY, 7201.TO) also said it was forced to delay the start of its second shift at one of the company's two vehicle-assembly lines near Guangzhou due to the strike. Meanwhile, Toyota Motor Corp.'s (TM, 7203.TO) assembly lines remained idle on Wednesday after a strike that began at another Chinese supplier plant. Honda shares edged down 0.3% to $29.90, Nissan slipped 0.7% to $14.60, and Toyota dropped 0.6% to $70.85. The European index closed up 0.5% to 108.17. Measures announced as part of the U.K.'s emergency budget are expected to be less severe than initially anticipated for some banks. Citigroup bank analysts wrote: "The levy is less severe than the market expected, we believe, for Lloyds and RBS. It is less positive for Barclays, since its wholesale funding is relatively short-dated." Lloyds Banking Group PLC's (LYG, LLOY.LN) shares closed up 2.3% to $3.52 and Royal Bank of Scotland Group PLC's (RBS, RBS.LN) shares ended up 1.9% to $13.91, while Barclays PLC's (BCS, BARC.LN) shares slipped 0.2% to $17.96. U.K.-based mobile operator Vodafone Group PLC (VOD, VOD.LN) has expressed initial interest in selling its minority stake in Polish mobile phone operator Polkomtel, which could put the entire company on the market later this year. Shares rose 1.5% to $21.35. The Latin-American index slipped 0.03% to $357.53. Sao Paulo state waterworks Companhia de Saneamento Basico do Estado de Sao Paulo (SBS, SPSP3), or Sabesp, signed a contract to provide service for Sao Paulo city for the next 30 years, Sabesp said late Tuesday in a statement. Shares jumped 4.6% to $40.92. Brazilian state-run energy giant Petroleo Brasileiro SA (PBR, PETR4.BR) late Tuesday decided to push back its much-anticipated share offering to September, once again stalling what's expected to be one of the world's largest-ever share sales. Shares fell 2.1% to $36.47. The Asian index edged up 0.4% to 120.58. South Korean steel producer Posco (PKX, 005490.SE) has decided to withdraw its bid to acquire Zaporizhstal (ZPST.UR) due to uncertainties surrounding the bidding process, the company said in a regulatory filing. Shares climbed 2.8% to $105.14. China-based energy stocks were also a pocket of strength, with CNOOC Ltd. (CEO, 0883.HK) up 1% to $176.19 and China Petroleum & Chemical Corp. (SNP, 0386.HK, 600028.SH) up 1.8% to $83.06. The emerging-markets index closed up 0.4% to 297.40. Indian software export Satyam Computer Services Ltd. (SAY, 500376.BY) gained amid hopes it is close to fixing its reconciliation of accounts and in over the next month or so may come out with better-than-expected results, chief dealer at a local fund said. Shares jumped 4.1% to $5.14. -By Victoria Finkle, Dow Jones Newswires; 212-416-3418; victoria.finkle@dowjones.com (END) Dow Jones Newswires June 23, 2010 17:11 ET (21:11 GMT)