EMERGING MARKETS-Brazil stocks edge higher as Embraer soars

Thu Jan 24, 2013 9:56am EST

Related Topics

* Embraer shares jump after booking $4 bln deal
    * Bovespa continues to face technical resistance
    * Brazil Bovespa up 0.18 pct, Mexico IPC rises 0.14 pct

    By Asher Levine and Danielle Assalve
    SAO PAULO, Jan 24 (Reuters) - Brazilian stocks gained on
Thursday as shares of planemaker Embraer soared, though trading
volume remained light and volatility was muted ahead of a market
holiday.
    Mexico's IPC index rallied for a seventh straight
day, while Chile's bourse fell its most in over two
months.
    Brazil's benchmark Bovespa stock index rose for the
second straight day, adding 0.18 percent to 62,080.75.
    Analysts said trading volume was light, however, as fewer
investors looked to take positions with markets set to close for
a local holiday on Friday. 
    Shares of Embraer SA, the world's largest maker
of regional jets, rocketed 10.25 percent after the company said
it booked an order worth up to $4 billion with Republic Airways
Holdings Inc. It was the biggest daily rise in
Embraer's stock in nearly four years. 
    Gains in the index were limited by a 0.6 percent fall in
shares of OGX Petroleo e Gas Participacoes SA, the
oil company controlled by Brazilian billionaire Eike Batista,
and a 1.3 percent drop in steelmaker Gerdau SA.
    "There is a lot of turnover," said Marcio Cardoso, a partner
with Titulo Corretora in Sao Paulo. "I still don't see
(medium-term) investors in the market. The level of optimism out
there is still not high enough to allow people to accept more
risk."
    The Bovespa has faced technical resistance near 62,000
points for over a week, and has failed to swing more than 1
percent in either direction since Jan 8. 
    Mexico's benchmark IPC index gained 0.14 percent to
45,507.37 points.
    Shares of broadcaster Televisa rose 0.36
percent after a local newspaper reported that telecom tycoon
Carlos Slim's Telefonos de Mexico will have to resubmit its
application to enter the television market. 
    Chile's benchmark IPSA index dropped for the second
straight day, losing 0.58 percent to 4,484.63 as a technical
momentum indicator known as the MACD neared a "bearish cross,"
suggesting the index could fall further in coming sessions.
    Shares of industrial conglomerate Copec fell 1
percent, contributing most to the index's losses, while retailer
Falabella dropped 0.64 percent. 
    
    Latin America's key stock indexes at 1434 GMT:
    
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,956.72      0.26      3.91
                                                   
 Brazil Bovespa               62,080.75      0.18      1.85
                                                   
 Mexico IPC                   45,507.37      0.14      4.12
                                                   
 Chile IPSA                    4,484.63     -0.58      4.26
                                                   
 Chile IGPA                   21,891.00     -0.46      3.90
                                                   
 Argentina MerVal              3,320.64      0.59     16.34
                                                   
 Colombia IGBC                14,894.72      0.17      1.22
                                                   
 Peru IGRA                    21,636.21     -0.07      4.88
                                                   
 Venezuela IBC               484,006.06      1.28      2.67
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