ADR Report-Infosys ADRs surge, lead Asian issues up|
Friday February 11, 12:44 pm Eastern Time
NEW YORK, Feb 11 (Reuters) - Infosys Technologies Ltd.(NasdaqNM:INFY - news) ADRs, or American Depositary Receipts, surged more than 100 points to a new record high Friday and led Asian ADRs higher.
Indian software firm Infosys took off earlier in the week on market speculation of an imminent acquisition announcement. Its gains were further fueled by analysts' revisions in economic forecasts for India, New York ADR traders said.
``The company-specific news definitely started the run and then we have had several firms changing their views on India overall based on the recent GDP numbers. Many of them are saying they are going overweight in technology stocks and consumer noncyclicals,' one ADR trader said.
Merrill Lynch said in a recent report that there is consensus that the Indian economy is turning around and the worst is behind. It added that software companies are likely to post above-average revenues and earnings over the next five years. It also noted a universal effort to move up the value chain, with the Net and e-business being the focus of attention.
``There is a lot more interest from global portfolio capital. They are taking a much more serious look at it on the belief that the government is managing to get their act together on both structural reform and fiscal discipline,' said Mike Kurtz, an analyst at IDEA Global.com.
Satyam Infoway (NasdaqNM:SIFY - news) ADRs also climbed on the enthusiasm for Indian issues, rising 23-1/16 to 98 after hitting a fresh 52-week high of 100-3/16.
Cable & Wireless HKT (NYSE:HKT - news) ADRs rose 7-3/16 to 30-5/8 after 10-month old Pacific Century CyberWorks Ltd. said it planned to propose a merger offer for the company in an attempt to outbid Singapore Telecommunications Ltd. .
``It bodes well (for the company). It's been the loser in the whole telecom evolution into the Internet while China Telecom ran away with the mobile and Internet ISP deal,' one trader said about Cable & Wireless HKT.
On the European front, the effect of index reweighing dominated trade as Mannesmann AG came out of the German index and Vodafone AirTouch Plc (NYSE:VOD - news) (quote from Yahoo! UK & Ireland: VOD.L) was weighted more heavily in the wake of their merger, said irenza, vice president of equity sales at JP Morgan. Investors' moved out of Mannesmann and into Vodafone, unloading other stocks.
British Telecommunications Plc (quote from Yahoo! UK & Ireland: BT.L) (NYSE:BTY - news) ADRs fell 1-1/2 to 162-1/2. Vodafone AirTouch ADRs eased 2-3/16 to 53-13/16.
Telecom Italia (NYSE:TI - news) ADRs rose 13-5/8 to 198-5/8, after touching a fresh 52-week high of 200. The ADRs gained as the company said it could spin off Tin.it into a new company or an existing company before the Seat merger.