maverick
10-11-2007, 09:45 PM
Emerging Mkt Stk Post Losses, Brazil's Shrs Take Brunt Of Hit
By Claudia Assis
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Emerging markets shares trading in New York headed lower midday Friday, with Brazilian stocks giving back some of Thursday's strong gains.
The Bank of New York's Emerging Markets American Depositary Receipts index lost 2.3% at 373.14 points. Its Latin America ADR index declined 4%, while its Asia index was 1.9% lower. The iShares MSCI Emerging Market index fund, which tracks 284 stocks from across the developing world, was down 2.3% at $153.64.
Brazilian shares were heavily hit, with the bank's Brazil index losing 5%.
"The credit market worries are just not going away," an ADR trader in New York said. "Emerging markets, vis-a-vis the rest of the world, (are) tracking way, way, better, but there's no way you can resist the pressure."
On Friday, the fourth largest bank in the U.S., Wachovia, warned of a $1.1 billion pretax hit, on top of a $347 million write-down already announced, on subprime-mortgage- related losses.
Brazilian stocks were virtually all lower, with state-controlled oil firm Petrobras (PBR) declining 9% to $106.50, giving back some of its recent double-digit gains. Petrobras Thursday announced finding massive oil reserves and shares surged.
The firm said Friday oil output at the ultra-deep Tupi field in Brazil's Santos Basin will be greater than an initial production of 100,000 barrels a day.
Meanwhile, airline TAM (TAM) was down 9% to $26. Brazil's leading airline Friday reported third quarter net profit of 48.5 million Brazilian reals ($27.8 million), down from BRL212.7 million registered in the same quarter of 2006.
The quarter was a tough one for TAM following the crash of a TAM airliner at Sao Paulo's Congonhas airport in June, Brazil's worst civil aviation disaster.
Mexican stocks were also mostly lower, with wireless provider America Movil (AMX) retreating 1.5% to $58.25. Sister company fixed-line Telmex (TMX) was stumbling 1.5% to $32.36.
Turning to Asia, Chinese stocks were nearly all posting losses, with China Eastern Airlines (CEA) plunging 18% to $82.67. China Eastern's deal to sell a 24% stake to Singapore Airlines (C6L.SG) and Temasek Holdings Pte. has been ratified, Singapore Airlines said Friday.
Singapore Airlines agreed in September to buy a 15.7% stake in the Chinese carrier, while Singapore Airlines' parent, Temasek Holdings, agreed to simultaneously buy another 8.3% of China Eastern.
Meanwhile, state-controlled oil firm PetroChina (PTR) was bucking the trend to rise 1.5% to $203.
Among South Korean names, steel maker Posco (PKX) was declining 3.5% to $156.40. Posco wants to invest about $5.8 billion to build a steel plant and a coal-fired power plant in Vietnam's Khanh Hoa province, according to reports in Vietnam's state media.
South Korea's largest lender, Kookmin Bank (KB), was gaining 2% to $74.75. Kookmin has agreed to buy a 93% stake in local securities firm Hannuri Investment & Securities for about KRW250 billion, a person familiar with the matter said Friday. The move is part of Kookmin's plan to bolster its non-banking business.
From Taiwan, chip maker TSMC (TSM) was flat at $9.87. TSMC, the world's largest chip foundry, reported Friday unconsolidated revenue of NT$31.73 billion for October, up 18% from NT$26.85 billion a year earlier
By Claudia Assis
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Emerging markets shares trading in New York headed lower midday Friday, with Brazilian stocks giving back some of Thursday's strong gains.
The Bank of New York's Emerging Markets American Depositary Receipts index lost 2.3% at 373.14 points. Its Latin America ADR index declined 4%, while its Asia index was 1.9% lower. The iShares MSCI Emerging Market index fund, which tracks 284 stocks from across the developing world, was down 2.3% at $153.64.
Brazilian shares were heavily hit, with the bank's Brazil index losing 5%.
"The credit market worries are just not going away," an ADR trader in New York said. "Emerging markets, vis-a-vis the rest of the world, (are) tracking way, way, better, but there's no way you can resist the pressure."
On Friday, the fourth largest bank in the U.S., Wachovia, warned of a $1.1 billion pretax hit, on top of a $347 million write-down already announced, on subprime-mortgage- related losses.
Brazilian stocks were virtually all lower, with state-controlled oil firm Petrobras (PBR) declining 9% to $106.50, giving back some of its recent double-digit gains. Petrobras Thursday announced finding massive oil reserves and shares surged.
The firm said Friday oil output at the ultra-deep Tupi field in Brazil's Santos Basin will be greater than an initial production of 100,000 barrels a day.
Meanwhile, airline TAM (TAM) was down 9% to $26. Brazil's leading airline Friday reported third quarter net profit of 48.5 million Brazilian reals ($27.8 million), down from BRL212.7 million registered in the same quarter of 2006.
The quarter was a tough one for TAM following the crash of a TAM airliner at Sao Paulo's Congonhas airport in June, Brazil's worst civil aviation disaster.
Mexican stocks were also mostly lower, with wireless provider America Movil (AMX) retreating 1.5% to $58.25. Sister company fixed-line Telmex (TMX) was stumbling 1.5% to $32.36.
Turning to Asia, Chinese stocks were nearly all posting losses, with China Eastern Airlines (CEA) plunging 18% to $82.67. China Eastern's deal to sell a 24% stake to Singapore Airlines (C6L.SG) and Temasek Holdings Pte. has been ratified, Singapore Airlines said Friday.
Singapore Airlines agreed in September to buy a 15.7% stake in the Chinese carrier, while Singapore Airlines' parent, Temasek Holdings, agreed to simultaneously buy another 8.3% of China Eastern.
Meanwhile, state-controlled oil firm PetroChina (PTR) was bucking the trend to rise 1.5% to $203.
Among South Korean names, steel maker Posco (PKX) was declining 3.5% to $156.40. Posco wants to invest about $5.8 billion to build a steel plant and a coal-fired power plant in Vietnam's Khanh Hoa province, according to reports in Vietnam's state media.
South Korea's largest lender, Kookmin Bank (KB), was gaining 2% to $74.75. Kookmin has agreed to buy a 93% stake in local securities firm Hannuri Investment & Securities for about KRW250 billion, a person familiar with the matter said Friday. The move is part of Kookmin's plan to bolster its non-banking business.
From Taiwan, chip maker TSMC (TSM) was flat at $9.87. TSMC, the world's largest chip foundry, reported Friday unconsolidated revenue of NT$31.73 billion for October, up 18% from NT$26.85 billion a year earlier