EMERGING MARKETS-Brazil stocks end at 2-1/2-week high, Mexico dips

Fri Nov 23, 2012 5:59pm EST

Related Topics

* Shares in Eletrobras bounce after slump to 18-year low
    * Brazil Bovespa gains 2.01 pct, Mexico IPC drops 0.27 pct


    By Michael O'Boyle and Asher Levine
    MEXICO CITY/SAO PAULO, Nov 23 (Reuters) - Brazilian stocks
jumped on Friday to close at a 2-1/2-week high, boosted by
optimism about a Greek debt deal and economic data from Germany,
while Mexican stocks slipped following a four-day rally.
    Brazil's benchmark Bovespa stock index rose 2
percent as it capped it best week since mid-September with a 3.9
percent gain. However, volume was thin due to a local holiday
earlier in the week as well as the U.S. Thanksgiving holiday.
    China factory sentiment in November earlier pointed to
growth for the first time in 13 months, which raised hopes that
an economic slowdown has hit bottom in Brazil's biggest trading
partner. China is a major consumer of Latin American raw
materials, such as iron, copper and oil. 
    "It seems that China is turning a corner into positive
territory," said Manuel Lasa, head of stock trading at brokerage
Interacciones in Mexico City. "If that is the case, then Brazil
could benefit."
    Brazilian stocks have lagged behind sharp gains in Mexico
and Colombia, which have deeper economic ties to the United
States, where growth has held up despite a wider global
slowdown.
    Stocks worldwide received a boost after data on Friday
showed German business sentiment rose in November and Greece's
finance minister said the heavily-indebted country was close to
securing a critical aid package.  
    In Brazil, shares of state-controlled oil company Petrobras
 added 2.79 percent while iron ore miner Vale
 gained 1.38 percent.
    Shares of electric utility Eletrobras soared 5.48
percent, rebounding after slumping about 50 percent this month
to their lowest level in 18 years.
    Eletrobras shares sank on concerns that the government will
force it to cut power rates as the government seeks to boost
growth by lowering energy costs. Brazil's government has ruled
out injecting fresh capital into the company, a local newspaper
reported on Friday. 
    Brazil's Bovespa has struggled to remain in positive
territory for the year amid investor concerns over heavy
government intervention in private-sector enterprises such as
telecoms, electricity concessions and banks in recent months.
    "Investors are not comfortable positioning themselves in the
Bovespa for next year," said Andre Perfeito, chief economist
with Gradual Investimentos in Sao Paulo.
    Mexico's benchmark IPC stock index dipped 0.27
percent after clocking its best four-day run since June, with a
3.6 percent gain in the last four sessions.
    Mexican stocks got a recent boost as investors turned more
optimistic about fiscal negotiations in the United States,
Mexico's top trading partner. But stocks could be vulnerable to
doubts once talks between lawmakers start up again next week.
    "This is going to be a complicated and drawn-out process,
and this could create uncertainty in the markets," said Arturo
Espinosa, an analyst at Santander in Mexico City.
    The recent surge in Mexican stocks has also pushed prices
closer to record highs, raising concerns that local equities
prices have become too expensive.
    "I do not see the room for a strong rise from here. America
Movil is looking very heavy," said Fanuel Fuentes, an analyst at
brokerage Monex in Mexico City.
    Shares of billionaire Carlos Slim's America Movil 
slipped 0.44 percent. The stock accounts for more than 20
percent of the IPC.  
    The rally in Mexican stocks this week helped lift America
Movil off of a nearly eight-month low, but analysts said further
gains would be limited due to concerns that the pace of revenue
and profit growth is slowing in Latin America's biggest mobile
phone and pay TV operator.
    Shares of plastic pipe maker Mexichem dropped
1.83 percent after the company said on Thursday it was
abandoning plans for a joint venture with national oil company
Pemex due to continued delays by the state-run giant.
 
    Chile's IPSA index edged higher 0.09 percent back
from its lowest since early September.
    Shares of regional energy group Enersis rose 2.16
percent after the company said late Thursday that it will hold a
meeting with shareholders of its Chilean private pension fund 
to discuss a controversial capital increase. 

Latin American stock indexes at 2222 GMT:   
 Stock indexes        Latest    Daily    Year-to-date
                                  pct      pct change
                               change  
 MSCI Latam          3,603.26    1.09            0.03
                                       
                                       
 Brazil Bovespa     57,574.03    2.01            1.44
                                       
 Mexico IPC         41,919.55   -0.27           13.06
                                       
 Chile IPSA          4,143.25    0.09           -0.82
                                       
 Chile IGPA         20,365.27    0.05            1.17
                                       
 Argentina MerVal    2,339.92    4.34           -4.98
                                       
 Colombia IGBC      14,201.02    0.08           12.12
                                       
 Peru IGRA          20,227.74    0.94            3.87
                                       
 Venezuela IBC      384,906.1   -0.34          228.88
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