EMERGING MARKETS-Latam stocks mixed; Brazil extends rally, Mexico drops

Wed Apr 24, 2013 11:33am EDT

Related Topics

* Vale, Petrobras lead Bovespa rally; longest since
September
    * Coke bottler Femsa weighs on Mexico bourse
    * Brazil's Bovespa adds 1.06 pct, Mexico's IPC down 1.12 pct

    By Asher Levine
    SAO PAULO, April 24 (Reuters) - Brazilian stocks gained on
Wednesday as continued bargain-hunting fueled a rally in
blue-chip commodities producers, but Mexican stocks were at risk
of snapping a three-day gain after bottling group Femsa
 posted weak first-quarter earnings.
    Brazil's Bovespa stock index traded higher for the
fifth straight session, adding 1.06 percent to 55,468.22 points.
If the market closes in positive territory, it will be the
Bovespa's longest winning streak since mid-September 2012.
    Shares of iron ore giant Vale SA advanced 1.95
percent, contributing most to the index's gains, with the miner
expected to present its first-quarter earnings results after
market close on Wednesday. 
    State-run oil company Petroleo Brasileiro SA,
known as Petrobras, rose 1.6 percent, adding to the previous
session's gains after Brazil's government announced measures to
support the country's ethanol industry. 
    Petrobras currently imports gasoline to satisfy domestic
demand, but sells the fuel at a loss due to government price
controls intended to temper inflation. Increased ethanol output
would help lower gasoline imports and reduce pressure on
Petrobras' bottom line.
    "Vale and Petrobras have been trading below book value and
stocks are very cheap right now," said Leandro Silvestrini, an
analyst with brokerage firm Intrader in Sao Paulo. "It's natural
that we start to see a recovery in those shares. Especially
after the Bovespa hit support levels near 52,300 last week."
    Petrochemicals producer Braskem rose 5 percent
after Bank of America Merrill Lynch analysts raised earnings
estimates and the price target for the shares, citing the
expected benefits from a reduction in sales taxes on key raw
materials announced by the Brazilian government on Tuesday.
    In Mexico, the benchmark IPC index moved lower for
the first session in four, losing 1.12 percent to trade at
42,628.99.
    Shares of Femsa, Latin America's biggest Coke
bottler, fell 3.7 percent after the company said higher costs
triggered a 7.7 percent drop in its first-quarter profit.
 
    Chile's blue-chip IPSA index was little changed at
4,307.93 as a gain in shares of regional energy group Endesa
Chile of 0.8 percent helped offset a 1 percent decline
in retailer Falabella.
    
    Latin America's key stock indexes at 1450 GMT:
    
 Stock indexes                              Daily   YTD pct
                                Latest        pct    change
                                           change  
 MSCI Latam                    3,737.68      0.09     -1.67
                                                   
 Brazil Bovespa               55,468.22      1.06     -9.00
                                                   
 Mexico IPC                   42,628.99     -1.12     -2.46
                                                   
 Chile IPSA                    4,307.93     -0.12      0.15
                                                   
 Chile IGPA                   21,140.81     -0.06      0.33
                                                   
 Argentina MerVal              3,599.16      0.83     26.10
                                                   
 Colombia IGBC                13,455.08      0.42     -8.57
                                                   
 Peru IGRA                    17,846.10      0.36    -13.49
                                                   
 Venezuela IBC               646,681.19         0     37.17
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