Trading in depositary receipts (DRs) was down by $420 billion year-over-year as a result of global financial turmoil, as one billion fewer DRs were traded this year so far than last, BNY Mellon says.
In its DR Midyear Market Review, the bank says that from January through June, 79.5 billion DRs valued at $1.49 trillion traded on the worlds markets, down from 80.5 billion DRs valued at $1.91 trillion for the same period last year.
Global DR programs now total now total over 3,500, however, an increase over 3,413 last year. BNY Mellons ADR Index also posted a 1.86% year-to-date gain.
The largest sector was the oil and gas industry, where 14.7 billion DRs valued at $328 billion were traded. However, the biggest gains through June were in beverages and diversified telecommunications, where returns up 40% and 4% respectively. The greatest losses were seen in the semiconductor and communications equipment sections, which experienced drops of 49% and 52% respectively.
In terms of volume, the construction materials and diversified telecommunication sectors increased 26% and 25% respectively, while the semiconductor and pharmaceutical sectors were down 37% and 21% respectively. Oil and gas had six new DR programs, the most of any sectors.
The amount of unsponsored DRs increased by 114 to almost 1,300, however, some programs were converted to sponsored status, including South African retailer Mr Price and Japanese printing and electronics firm Toppan Printing.
BNY Mellon itself was the sponsor of 58% of all new DR programs. See their full report here.
(OS)