EMERGING MARKETS-Latam stocks rise as Brazil, Mexico gain

Tue Dec 28, 2010 10:50am EST

* Bovespa gains 0.2 pct, led by Petrobras, OGX, Vivo

* Mexico's IPC up 0.1 pct, Argentina's Merval up 0.9 pct

SAO PAULO, Dec 28 (Reuters) - Latin American stocks edged higher in early trading on Tuesday as rising oil prices stoked shares in Brazil's Petrobras and OGX.

The MSCI Latin American stocks index .MILA00000PUS firmed 0.6 percent, after declining 0.7 percent in the previous session. The index has gained in five of the previous six sessions and is up 1.5 percent in that period on light trading ahead of the year-end holiday season.

Brazil's benchmark Bovespa index .BVSP added 0.2 percent higher to 67,935.37, led by a jump in state-run Petrobras and oil start-up OGX as crude oil prices climbed near a 26-month high. OGX (OGXP3.SA), controlled by billionaire Eike Batista, was up 2.4 percent at 19.49 reais.

Petrobras (PETR4.SA) gained 1.8 percent to 26.52 reais, heading for its biggest one-day rise in 11 days after the company reported a 4.7 percent jump in output from November late Monday. That signaled a recovery in production underway since October, Ativa brokerage analyst Monica Araujo said in a report.

"We believe in a positive impact in the company's shares, given that one of the main factors influencing the stock in the medium term is the improvement in perception that the company will deliver on its guidance," Araujo said in the report.

Vivo VIVO4.SA, Brazil's largest mobile phone company, gained 2.8 percent to 54 reais after after the company unveiled plans to be integrated into the Brazilian fixed-line phone unit of Spain's Telefonica (TEF.MC). The integration into the fixed line unit, Telesp TLPP4.SA, should boost trading volumes and increase savings, the companies said. Telesp rose 1.6 percent higher to 41.24 reais.

In Argentina, the benchmark Merval index .MERV gained 0.4 percent to 3,491.88 as investors snapped up shares of utilities, with Pampa Energia (PAM.BA) and Edenor (EDN.BA) each gaining 2.8 percent.

Mexico's IPC index .MXX firmed 0.1 percent to 38,173.73, led by a 0.7 percent gain in Grupo Mexico (GMEXICOB.MX) and a 0.5 percent increase in Wal-Mart de Mexico (WALMEXV.MX). (Reporting by Elzio Barreto and Silvio Cascione; editing by Jeffrey Benkoe)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.