In Europe, BNY Mellon established over-the-counter DR programs for German luxury clothes maker Hugo Boss, Spanish mobile telecoms service group Let's Gowex, Austrian postal service Osterreichische Post, and was reappointed by Bayer, Fresenius Medical Care and Syngenta. BNY Mellon also acted as depositary for French semiconductor maker Sequans Communications on a secondary offering on the NYSE. Meanwhile, Russian companies continued to be the most-actively traded DRs on the International Order Book (IOB), according to London Stock Exchange data.
In the Middle East and Africa, BNY Mellon acted as tender and exchange agent and depositary bank for newly established OCI N.V., a subsidiary of Orascom Construction Industries of Egypt, when it launched a tender for all outstanding DRs of its parent and became the first Egyptian company to list on the NYSE Euronext in Amsterdam. In South Africa, BNY Mellon established an OTC DR program for Blue Label Telecoms, as well as a listing on the NYSE for Sibanye Gold, a company formed by the spin-off of mines by Gold Fields.
India, BNY Mellon met with the Ministry of Finance, markets regulator SEBI, and the Reserve Bank of
India to present a white paper,
India: Easing Conditions for Investors, suggesting that to remain one of the world's top investment destinations the nation should review its depositary receipt regulations and consider introducing OTC non-capital-raising ADR programs for Indian companies.
First Quarter Highlights include:
- The BNY Mellon Classic ADR Index SM Series, which tracks the performance of depositary receipts by country of origin, showed the Philippines leading with price gains of 20%, Oman with 19%, followed by Indonesia (+18%), Ireland and Nigeria with more than 13%, while the indices for Australia and Mexico gained 8% and 4%, respectively.
- The most active sectors were Technology with 6.4 billion DRs traded, valued at $56 billion, followed by 5.6 billion Bank DRs, at $76 billion, Oil and Gas issuers with just over 5 billion DRs traded, valued at $104 billion, 3.4 billion Metals & Mining DRs at $52 billion, followed by Mobile Telecoms issuers trading 2.3 billion DRs totaling $50 billion.
- Globally, there were 35 billion DRs valued at $630 billion traded, representing increases of 12% and 14%, respectively, compared with the previous quarter.
- Western Europe saw more than 12 billion DRs traded valued at $246 billion, followed by Latin America where there were 9 billion traded in the first quarter with a total of $159 billion, Asia Pacific had 6.6 billion DRs worth $140 billion change hands, Eastern Europe saw 5.6 billion DRs bought and sold in transactions totaling $63 billion and the Middle East and Africa, where just over a billion DRs traded totaling $21 billion.
- The top 10 DRs in terms of price performance include a 145% leap by the U.K.'s Thomas Cook , followed by Taiwan's Himax Technologies (+126%), and then Taiwan's Inotera Memories (112%), Edap of France (+104%), Australia's Linc Energy (95%), Mexico's Corporacion Durango (+93%), Australia's Novogen (+90%), as well as China's WSP Holdings (+88%), Vipshop and Camelot Information Systems, both gaining 70%.
- The most actively traded DRs in the U.S. by value included China's Baidu, Brazil's Vale and Petrobras, the U.K.'s BP and Vodafone, Russia's Gazprom and Sberbank, Finland's Nokia, and Mexico's America Movil and Cemex.
- Russia dominated the top 10 most-actively traded depositary receipts on London's IOB with Egypt's Orascom Telecom being the only non-Russian company that traded enough volume to make the list. The running order was Sberbank, VTB Bank, Lukoil, Uralkali, Orascom Telecom, Severstal, Mail.ru, OJSC Magnit, MegaFon and GlobalTrans Investment.