U.S. investors’ interest in foreign stocks is increasing every year. To cater to this demand and to raise capital, foreign companies are increasingly listing their stocks on the major U.S. exchanges or on the OTC markets. According to a report by JP Morgan, DR trading volume hit a record high increasing 16% to 160 billion DRs in the first 11 months of 2011. The dollar value of the traded DRs rose by 12% from the previous year to $3.6 Trillion in the same period.
The graphic below shows the most traded ADRs on the NYSE, NASDAQ and OTC in the first 11 months of 2011:
Click to enlarge:
Source: Depository Receipts Year in Review 2011, J.P. Morgan
Nokia (NYSE:NOK) was the most traded ADR on the NYSE. Brazilian ADRs were heavily traded on the NYSE with Vale (NYSE:VALE), Petrobras (NYSE:PBR), Itau Unibanco (NYSE:ITUB), Banco Bradesco (NYSE:BBD) and Gerdau (NYSE:GGB) among the top 10. Hong Kong-based casino operator Melco Crown Entertainment (MPEL) was the top traded foreign stock on the NASDAQ. Among the highly traded ADRs on the OTC market, Swiss consumer goods giant Nestle (OTCPK:NSRGY) and drug maker Roche (OTCQX:RHHBY) can be considered for long-term investment.