RI ADRs rebound on rupiah's rise

RI ADRs rebound on rupiah's rise

NEW YORK (Reuters): American Depositary Receipts (ADRs) fell overall Friday on fears about Asian financial stability.

Indonesian ADRs rebounded, buoyed by a rising currency despite a political and monetary crisis gripping the Southeast Asian nation.

"Obviously there is weakness across the board in all markets, basically off weakness in Asia," a trader said. "That has carried over into ADRs."

The ADRs also mirrored the drop in New York markets, with the blue-chip Dow Jones industrial average off 67 points at 7736 in mid-morning. The Dow shrugged off stronger-than-expected U.S. employment figures, which suggest the economy is still strong.

Indonesian ADRs rose off sharp losses Thursday helped by a rally in the country's currency, the rupiah, against the dollar.

U.S. President Bill Clinton told President Soeharto in a telephone call that Indonesia had to follow through on economic reforms.

Telephone company PT Telekom rose 15/16, or 15.38 percent, to 6-5/8 in heavy volume. Telekom was the percentage-gain leader on the New York Stock Exchange and among its volume leaders.

International telecommunications provider Indonesian Satellite Corp was up 3/8, or 2.81 percent, to 11-1/2 on heavy volume.

Chinese ADRs also eased after the Hang Seng Index fell almost four percent to its lowest close since May 1995 and major banks jacked up their prime lending rates.

Huaneng Power International Inc dropped 1-9/16 to 18-1/4 and was among percentage-loss leaders on the New York Stock Exchange. China Eastern Airlines Corp Ltd fell 9/16 to 11-7/8.

Latin American ADRs fell, dragged down by the Asian worries and a decision by Chile, which has major trade with East Asia, to raise interest rates to protect the peso.

Chemical company Soquimich fell 3-13/16 to 36-7/16, a 12-month low, and was among percentage-loss leaders on the New York Stock Exchange.

Telecommunications company CTC dropped 1-1/16 to 23-13/16. Among European ADRs, drugs company Glaxo Wellcome Plc.

Emerging market debt prices ended a volatile week mostly lower as sellers took their cue from a 222-point plunge in the Dow Jones industrial average.

"There is no liquidity in this market now," said one trader. "What is driving the market is the barometer of risk, which is basically the U.S. stock market."

Emerging debt prices have been tracking the Dow over the past few months since the Asian crisis deepened in October. The Dow Jones industrial average closed down 2.85 percent, or 222 points to 7580.

Meanwhile, the U.S. Treasury 30-year benchmark bond rose 18/32 to yield 5.71 percent, dampening the price action of Brady bonds.