The Bank of New York Reports Continued Strength in the Depositary Receipt Markets for First Half of 2005.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Emerging Market Issuers Lead Capital Raisings; Developed Market Issuers Lead Trading Volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. , Value and Investment Broad-based issuer and investor interest in the American and global depositary receipt depositary receipt A negotiable certificate that represents a company's publicly traded debt or equity. Depositary receipts are created when a company's shares or bonds are delivered to a depositary's custodian bank, which instructs the depositary to issue (DR) markets remained strong through the first six months of 2005, according to an analysis by The Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. . Investors continued to own DRs at record levels while companies from emerging markets led new DR capital raisings and companies from developed markets saw their DRs lead global trading volume. "During the first six months of 2005, the key DR market metrics continued the substantial gains seen over the past two years," said Christopher Sturdy, managing director and Head of The Bank of New York's Depositary Receipt Division. "We are particularly pleased to report that DR capital raising transactions, the only major area of the market that had not rebounded, have steadily increased in the first half of the year." Investors Remain Active DR Market Participants The total value of U.S. investment in non-U.S. equities increased to an all-time high of $2.4 trillion as of March 31, 2005, an increase of 16 percent from the same time last year, according to the latest U.S. Federal Reserve statistics. DRs continue to comprise a significant part of this investment and the total value of U.S.-listed DRs rose similarly, increasing to $548 billion at the end of the first quarter, a jump of 14 percent from the same time last year and an all-time high. The Bank of New York reports DR trading volume on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. (NYSE NYSE See: New York Stock Exchange ), the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. (Amex) and NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on was 19.2 billion DRs, valued at $451 billion for the first six months of 2005. Both figures are similar to 2004's half-year statistics and projected to finish the year close to 2004's final figures when annual DR trading reached a record volume of 37.4 billion valued at $852 billion. During the first half of 2005, DRs from the energy sector, led by the U.K.'s BP and The Netherlands's Royal Dutch Petroleum, the pharmaceutical sector, led by Ireland's Elan and Israel's Teva, and the technology sector, led by Finland's Nokia and Sweden's Ericsson, were among the most active. DR Establishment Grows; Half-Year DR Capital Raisings Surpass 2004's Full Year Total Industry wide, The Bank of New York reports a record 1,866 sponsored DR programs for issuers from 73 countries were available to investors at mid-year 2005. The Bank also reports that companies from 28 countries established 67 new DR programs during the first six months of the year, an increase of one percent from the same period last year. Companies from India and Australia issued the most new DR programs through the first six months of the year with 13 and nine, respectively. The most significant growth area of the DR market was in capital raising transactions. During the first half of 2005, 38 new DR offerings by non-U.S. companies and governments raised $11.8 billion - surpassing 2004's full-year total of $11.3 billion in 53 new DR offerings. As expected, issuers from the emerging market "BRIC BRIC Brazil, Russia, India and China (world affairs) BRIC Brooklyn Information & Culture BRIC Biological Research Information Center (Korea) BRIC Benign Recurrent Intrahepatic Cholestasis " countries of Brazil, Russia, India and China plus Taiwan accounted for 80 percent of all DR capital raising transactions. Of note in the Asian emerging markets were the initial public offerings (IPOs) of China Techfaith Wireless and Korea's Kumho Tire and Gravity. Follow-on offerings by India's Infosys Technologies, ICICI Bank and UTI UTI urinary tract infection. UTI abbr. urinary tract infection UTI urinary tract infection. UTI Urinary tract infection, see there Bank as well as Taiwan's Chi Mei Optoelectronics and Far EasTone Telecommunications were successfully completed. In the European emerging markets, three Russian companies dominated with Sistema, Pyaterochka Holding and Evraz Holding raising more than $2.5 billion combined with DRs in their IPOs. In Latin America, Brazil's Submarino successfully completed an IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. and raised capital with DRs, while Mexico's FEMSA FEMSA Fomento Económico Mexicano, SA FEMSA Fire and Emergency Manufacturers and Services Association Inc. FEMSA Female Education in Maths and Science in Africa and Brazil's GOL GOL - General Operating Language. Subsystem of DOCUS. [Sammet 1969, p.678]. Airlines tapped the market with follow-on DR offerings. Issuers from the developed markets completed only four DR capital raising transactions - three of which, however, were among the largest so far this year. The U.K's Barclays Bank and Royal Bank of Scotland
The Royal Bank of Scotland Plc (Scottish Gaelic: Banca Rìoghail na h-Alba each completed preference share DR offerings of $1 billion while Belgium's RHJ RHJ Right Ho, Jeeves (book) International raised $1.1 billion. The fourth, Italy's Gentium, listed on the Amex with a small capital raising. U.S. Stock Exchange Listings Flat As Non-U.S. Stock Markets Continue to Grow As expected, few companies completed new U.S. stock exchange listings in part because of continued concern regarding U.S. regulations, particularly the Sarbanes-Oxley Act See SOX. . During the first half of the year, only eight companies completed new U.S. listings with DRs, the same number as the first half of 2004. Over the past six months, several DR issuers left the U.S. listed markets due to mergers, acquisitions, deregistration deregistration removal of right to practice by local registering body, usually as a disciplinary measure because of professional misconduct, possibly because of inability to perform because of psychiatric problem. and financial difficulty. As a result, 488 DR programs are now listed on the NYSE, Amex and NASDAQ, a two percent decrease from 498 at year-end 2004. Non-U.S. stock exchanges are continuing to grow as an important listing market for emerging market DR issuers. Year-to-date 19 companies completed DR listings on the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. (LSE LSE - Language Sensitive Editor ) and the Luxembourg Stock Exchange The Luxembourg Stock Exchange (French: Bourse de Luxembourg) is a stock exchange based in Luxembourg City, in southern Luxembourg. (LuxSE), the two primary non-U.S. DR listing markets. This year's total number of new DR listings on the LSE and LuxSE is projected to nearly double 2004's total of 20 listings. Overall, 262 companies currently have DRs listed on the LSE and the LuxSE. DR trading volumes outside the U.S. are increasingly significant as well. The Bank projects that through the first six months of the year more than $50 billion in DRs have traded on the LSE's International Order Book, the primary trading market for DRs outside the U.S. Global Equity Indices Generally Higher But Many Dollar-Denominated Prices Are Lower Most non-U.S. market indices were higher for the first half of the year with the local currency denominated MSCI EAFE Index returning 6.3 percent and trading near its three-year high. The strengthening U.S. dollar versus major foreign currencies, however, limited returns for U.S. investors and The Bank of New York's dollar-denominated ADR Index ADR Index A market-capitalization-weighted index that tracks all depositary receipts traded on the New York Stock Exchange, the American Stock Exchange, and Nasdaq. (SM) fell slightly from the beginning of the year. On June 30, 2005, The Bank of New York's Composite ADR Index, the only real-time index to track all DRs, New York shares and global registered shares traded on the NYSE, Amex and NASDAQ, closed at 119.58, down 2.5 percent year-to-date, but less than 6 percent off its four-year high which was reached in March. The Europe and Asia regional sub-indices were both lower year-to-date while the Latin America ADR Index gained 10.9 percent. The U.S. equity markets were also lower for the first six months of the year. As of June 30, 2005, the Dow Jones Industrial Average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. was down 4.7 percent year-to-date while the broader Standard & Poor's 500 Index had lost 1.7 percent. Index Name Y-T-D Change ---------------------------------------------------------------------- The Bank of New York Composite ADR Index -2.52% ---------------------------------------------------------------------- ---------------------------------------------------------------------- The Bank of New York Latin America ADR Index 10.91% ---------------------------------------------------------------------- The Bank of New York Europe ADR Index -2.80% ---------------------------------------------------------------------- The Bank of New York Asia ADR Index -4.05% ---------------------------------------------------------------------- ---------------------------------------------------------------------- The Bank of New York Emerging Markets ADR Index 7.30% ---------------------------------------------------------------------- The Bank of New York Developed Markets ADR Index -3.50% ---------------------------------------------------------------------- The Bank of New York ADR Index(SM) has 442 constituents and a free float Free float An exchange rate system characterized by the absence of government intervention. Also known as clean float. market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. , as defined by Dow Jones & Company, in excess of $5.1 trillion. The Bank of New York Proves Its Leadership During the first six months of 2005, The Bank of New York solidified its depositary leadership position across a broad range of metrics acting for 66 percent of all new DR programs, 61 percent of all DR capital raising transactions and 67 percent of all new U.S. stock exchange listings. The Bank of New York continues to be the depositary of choice for experienced DR issuers as well. During the first half of 2005, French media company Thomson, U.K. retailer J Sainsbury and Mexican materials company Vitro switched their DR programs to The Bank of New York from other depositary banks. In total, The Bank of New York acts as depositary for more than 1,190 American and global depositary receipt programs, a 64 percent market share, acting in partnership with leading companies in 60 countries. With an unrivalled commitment to helping securities issuers succeed in the world's rapidly evolving financial markets, the Bank delivers the industry's most comprehensive suite of integrated depositary receipt, corporate trust and stock transfer services. Additional information is available at www.adrbny.com. The Bank of New York Company, Inc. (NYSE: BK) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, investment management, and individual & regional banking services. The Company's extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com. The Bank of New York provides no advice nor recommendation or endorsement with respect to any company or security. Nothing herein shall be deemed to constitute an offer or solicitation of an offer to buy or sell securities. |
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