ADR Report-ADRs slide on GM, profit jitters; Honda hit
By Ellis Mnyandu
NEW YORK, July 2 (Reuters) - U.S.-traded shares of overseas companies slid on Wednesday as investors worried about the corporate profit outlook and a major brokerage's warning that General Motors Corp's GM.N bankruptcy is not impossible.
The Bank of New York Mellon's index of leading American Depositary Receipts (ADRs) .BKADR slid 1.6 percent while the 30-share Dow Jones industrial average .DJI tumbled 85 points, or 0.8 percent, to 11,292.72.
GM shares were among the Dow's top drag, falling more than 14 percent to $10.06 on the New York Stock Exchange.
GM's slide came a day after the automaker posted an 18.5 percent drop in June sales, before adjusting for three fewer sales days in the month compared with a year earlier.
Merrill Lynch said GM, grappling with falling demand for highly profitable trucks and SUVs as gasoline prices soar, will need to raise as much as $15 billion in cash to shore up its finances and bankruptcy is "not impossible" if the U.S. auto market continues to slump. For details, see [ID:nN02356352].
And with shares of GM on the skids, investors also pummeled shares of other automakers, including shares of Japanese rivals.
U.S.-listed shares of Honda Motor Co (7267.T) fell 1.2 percent to $33.61 on the New York Stock Exchange, while ADRs of Nissan Motors NSANY.O fell nearly 3 percent on Nasdaq. Shares of Toyota Motor Co (7203.T)(TM.N) dropped 2.1 percent to $91.68 on the NYSE.
The Bank of New York Mellon's index of leading European ADRs .BKEUR fell 1.2 percent. In Europe, shares ended at intraday lows on Wednesday following a sharp drop in coal prices which weighed heavily on mining stocks. A solid recovery among banks placed a cap on losses.
The Bank of New York Mellon's index of leading Asian ADRs .BKAS declined 2 percent. In Asia, Japan's Nikkei average .N225 fell 1.3 percent on Wednesday to hit its longest losing streak in more than 40 years, as worries about the global economy hit exporters such as Canon Inc (7751.T)(CAJ.N).
U.S.-listed shares of Canon were down 2.9 percent at $48.56 on the NYSE.
Receipts with the Bank of New York Mellon's index of leading Latin American ADRs .BKLA tumbled 3.5 percent, mirroring equity market slides in Brazil and Mexico. (Reporting by Ellis Mnyandu; Editing by Jonathan Oatis)
