• PAGE ONE
• INDEX
• HOME

`Market swings may hit floats by non-US firms'

Our Bureau

NEW DELHI, Jan. 4

THE uncertainty in the US markets may well affect capital raisings by non-US companies in the first-half of 2001, according to the Managing Director and head of the ADR division of the Bank of New York, Mr Timothy F. Keaney.

Mr Keaney's assessment for the start of the year is in contrast to 2000, when trading volumes in depository receipts topped the $1-trillion mark for the first time. This was on the back of heightened investor interest in well-established global companies and opportunities in telecommunications, media and technology industries. An added factor was the large number of cross-border mergers and acquisitions, which took place during the year, the bank said in a statement.

At the end of 2000, close to 600 depository receipt programmes were listed on the US exchanges with trading volumes exceeding $1.2 trillion, the bank said. This is seen as a widespread acceptance of ADRs by US investors looking to diversify their portfol io globally.

In the Asia-Australia region, 59 new programmes were established from 10 countries in this region, with the mobilisation being $11 billion. According to the bank, the most notable among them are the Chinese Government's sale of Petrochina and China Unico m, and the Korean Government's seventh sale of Pohang Iron and Steel. From India, VSNL's depository receipts were listed on the New York Stock Exchange.

During 2000, the Bank of New York added 113 programmes from 33 countries. The bank, currently issues depository receipts for more than 1,400 programmes, representing 69 countries, accounting for 65 per cent of all the public-sponsored depository receipt programmes.