ADR’s gain despite Baidu losses

Despite a sharp fall in shares of Baidu.com, the Chinese internet company, the Bank of New York’s index of leading foreign shares traded in the United States gained 0.6 percent on Wednesday.

The index of leading Asian ADRs was also up, by 0.5 percent to 119.11, despite the trouble for Baidu.com, which lost nearly 21 percent to $89.84, when two of the banks that managed the company’s initial public offering said that its stock was trading too far above its initial value.

The index of leading Latin American ADRs was also up by 0.5 percent to 179.60, while the index of leading European ADRs gained 0.7 percent to 132.93.

The telecommunications sector was up on the day. Mexican company Telmex gained 0.4 percent to $19.69 on the announcement that it would pursue further growth by continuing its investments in Chile. Elsewhere in the sector, Australian group Telstra Corp. was up nearly 1 percent to $16.88 on narrow approval of its privatization by parliament, while Vodafone rose 1.5 percent to $27.77.

The oil and mining sectors were also up on the day. Oil and gas group Norsk Hydro added 2.7 percent to $112.89 on the announcement of an agreement to cooperate with Russian groups on projects in the Arctic. Meanwhile in the mining sector, BHP Billiton was up 1.9 percent, while South African company Gold Fields advanced by 5.6 percent to $12.23.

Story link: ADR’s gain despite Baidu losses