EMERGING MARKETS-Latam stocks near 1-month high, Bovespa slips

Thu Dec 6, 2012 10:48am EST

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* Brazil Bovespa drops on fears of government intervention
    * Mexico IPC gains 0.26 pct

    By Danielle Assalve and Silvio Cascione
    SAO PAULO, Dec 6 (Reuters) - Latin American stocks gained on
Thursday to their highest in nearly one month, following global
emerging markets optimism over the progress of budget
negotiations in the United States.
    The MSCI Latin American stock index gained
0.59 percent to 3,623.15, the highest since Nov. 8, as investors
worldwide were reassured by a statement from President Barack
Obama who said a deal on the fiscal cliff budget situation was
possible in "about a week". 
    But Brazilian stocks slipped as investors fear increased
government intervention amid efforts to boost economic growth.
Shares of aircraft maker Embraer, which plunged on
news of a $3.29 billion order for its rival Bombardier
, also led the Bovespa index lower.
    After a small rise in early trading, the Brazilian benchmark
stock index slipped 0.33 percent to 57,490.09 points. 
    Brazil's economy has recovered very slowly from a year of
stagnation, prompting President Dilma Rousseff's government to
intervene in many sectors such as banking and electricity
generation to drive down costs for local manufacturers.
    The government has also unwound some capital control
measures to curb the recent drop in its currency, the real
. A media report published on Thursday said "alarmed"
government and central bank officials are concerned that the
recent depreciation of the country's currency could stoke
inflation. 
    "The government has acted in many sectors and that draws
back not only foreign investments but also financial flows in
local markets," said Álvaro Bandeira, partner at Órama
Investimentos, in Rio de Janeiro.
    "We can't really count on a year-end rally, but there's not
much room for a fall either...The market is in the trenches.
Investors shoot and then run for cover," he added.
    Shares of homebuilders gained following a payroll tax
reduction announced by the government earlier in the week.
Shares of Gafisa SA rose 2.25 percent to 4.53 reais,
also reflecting a price-target upgrade by Bank of America Merill
Lynch to 5.75 reais. 
    Shares in HRT Participacoes em Petroleo SA rose
1.93 percent after it announced a new discovery of gas in the
Solimoes Basin in Brazil's Amazon region with Anglo-Russian
partner TNK-BP Holding OAO. 
     Mexico's IPC index rose for the fourth straight
session, adding 0.26 percent to 42,525.05. Broadcaster Grupo
Televisa rose 0.98 percent, while retail giant
Wal-Mart de Mexico added 0.15 percent.
    At least five new companies will join Mexico's bourse next
year with initial public offerings, the president of the
country's stock exchange said on Wednesday. {ID:nL1E8N5K8I]
    Chile's IPSA index edged 0.09 percent lower.

    Latin America's key stock indexes at 1527 GMT:
    
 Stock indexes                            dai.ipsal      YTD %
                           Latest          % change     change
 MSCI LatAm                     3,623.15       0.59      -0.01
                                                     
 Brazil Bovespa                57,490.09      -0.33       1.30
                                                     
 Mexico IPC                    42,525.05       0.26      14.69
                                                     
 Chile IPSA                     4,145.96      -0.09      -0.76
                                                     
 Chile IGPA                    20,363.13      -0.02       1.16
                                                     
 Argentina MerVal               2,461.57      -0.34      -0.04
                                                     
 Colombia IGBC                 14,448.14       0.36      14.07
                                                     
 Peru IGRA                     20,176.58      -0.11       3.61
                                                     
 Venezuela IBC                409,830.28          0     250.17
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