EMERGING MARKETS-Brazil stocks up, oil shares gain as auction eyed

Tue May 14, 2013 5:52pm EDT

Related Topics

* Petrobras, OGX shares gain as oil auction gets under way
    * Cyrela, Marfrig jump after posting first-quarter results
    * Brazil Bovespa rises 0.4 pct, Mexico IPC up 0.38 pct


    By Asher Levine and Danielle Assalve
    SAO PAULO, May 14 (Reuters) - Brazilian stocks rose on
Tuesday, reversing a four-day losing streak as shares of oil
producers, meatpackers, and homebuilder Cyrela underpinned
prices, while Mexican stocks also advanced.
    Brazil's benchmark Bovespa stock index rose 0.4
percent to 54,666.82, helped by gains in shares of oil
producers, as Brazil began its first auction of oil and natural
gas rights in five years. 
     State-run oil company Petroleo Brasileiro SA,
known as Petrobras, rose 0.83 percent, while rival OGX Petroleo
e Gas Participacoes SA, controlled by Brazilian
billionaire Eike Batista, added 5.39 percent.
    "The auction is showing us where these companies are
planning to invest and is influencing the shares, though we are
also seeing a boost because the shares had fallen in the past
few days and bargain-hunters are taking advantage," said Fabio
Goncalves, an analyst with Banrisul in Porto Alegre, Brazil.
    Shares of Marfrig SA, Brazil's No. 2 listed
meatpacker, soared 12.88 percent, their most in about 1-1/2
years, after the company reported a nearly 20 percent rise in
operating profit in the first quarter, compared with the same
period last year. Rival BRF Brasil Foods SA added
2.21 percent.
    Shares of Brazil's No. 1 homebuilder Cyrela rose
4.45 percent, their biggest jump in over a month, after the
company reported an increase of more than 50 percent in
first-quarter net profit. 
    As Brazil's corporate earnings season winds up, and in the
absence of major economic indicators from the United States,
Brazil's stock market should proceed without a clearly defined
trend in either direction, said Luis Gustavo Pereira, a
strategist with Futura Corretora in Sao Paulo.
    Mexico's IPC index advanced for the third straight
session, adding 0.38 percent to 41,925.14. The index has mounted
an anemic rebound from a 6-month low hit late last week, rising
less than 0.6 percent in the last three sessions.
    "The market is consolidating itself, and the truth is, as
long as it cannot break resistance around 42,000, it is going to
stay this way," said  Esteban Velazquez, an analyst at Allianz
Fondika in Mexico City.
    Lender Grupo Financiero Banorte rose 3.46
percent while bottling firm Femsa added 1.85
percent.
    Chile's IPSA index broke a three-day decline, rising
0.17 percent to 4,288.95 as shares of Banco de Chile 
gained 1.21 percent.
        
    Latin America's key stock indexes at 2130 GMT:
    
 Stock indexes                      daily %    YTD %
                                     change   change
                         Latest              
 MSCI LatAm               3,739.12     0.85    -1.55
                                             
 Brazil Bovespa          54,666.82      0.4   -10.31
                                             
 Mexico IPC              45,278.06     0.38     3.60
                                             
 Chile IPSA               4,288.95     0.17    -0.29
                                             
 Chile IGPA              21,033.91    -0.01    -0.17
                                             
 Argentina MerVal         3,510.11       -2    22.98
                                             
 Colombia IGBC           13,215.60     0.19   -10.19
                                             
 Peru IGRA               17,565.34     -2.4   -14.85
                                             
 Venezuela IBC           725,716.1     3.84    53.94
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