EMERGING MARKETS-Brazil stocks rise as central banks calm markets

Wed Jun 26, 2013 11:54am EDT

Related Topics

* China central bank says will continue to support lenders
    * ECB's Draghi says stimulus to remain for 'foreseeable
future'
    * Brazil Bovespa gains 0.91 pct, Mexico IPC up 1.5 pct

    By Lucas Iberico-Lozada
    SAO PAULO, June 26 (Reuters) - Brazilian stocks rose on
Wednesday, tracking global markets higher as the world's major
central banks again reassured investors that monetary conditions
will remain favorable.
    Mexico's IPC index extended to climb a few days after
hitting a near one-year low, while Chile's bourse rose
for the second straight session.
    The Chinese central bank late on Tuesday said that it had
aided some banks and would continue to do so as a lender of last
resort for those facing short-term cash shortages, which calmed
investor concerns over a potential banking crisis.
 
    China, which is Brazil's top trading partner, is a key
market for Latin American raw material exports such as iron ore,
soybeans, petroleum and copper. 
    Shares were also buoyed after European Central Bank
President Mario Draghi said on Wednesday that the ECB would not
be scaling back its stimulus for the "foreseeable future."
 
    Brazil's benchmark Bovespa stock index climbed for a
second straight day, adding 0.91 percent to 47,320.45 points.
    "We are seeing improvement in the global perspective for
risk aversion," said Newton Rosa, chief economist of SulAmerica
Investimentos in Sao Paulo. "The news of the Fed's eventual
stimulus tapering has settled in, and the signs that the Chinese
central bank is still giving support to the economy has brought
some relief."
    Shares of the most widely traded commodities exporters led
the Bovespa higher. A 4.8-percent rise in shares of OGX Petroleo
e Gas Participacoes SA, the oil company controlled by
Brazilian billionaire Eike Batista, was the biggest contributor
to the index's gains.
    Shares of LLX Logistica SA, also controlled by
Batista, soared 21 percent after the company said late Tuesday
that it had hired financial advisers to evaluate business
opportunities involving its assets. Batista has been selling
stakes in his EBX industrial conglomerate as debt obligations
loom.
    The Bovespa is down more than 22 percent so far this year,
compared with a 12 percent rise in the U.S. benchmark S&P 500
index, as a sluggish local economy and the expectation
for weak corporate earnings have kept foreign investors at arm's
length.
    "Brazilians are optimistic by nature, but I think we have a
hard road ahead. If we can break the downward trend that has
been felt in the market for the past few weeks, then we can get
a breath of fresh air. But the long-term perspective is a
difficult one," said Fabio Goncalves, an analyst with Banrisul
in Porto Alegre.
    Mexico's IPC index rose by the most in nearly a
month, adding 1.5 percent to 38,469.01 points.
    Bottling group Femsa jumped 3.2 percent,
boosting the index's gains, while telecommunications firm
America Movil, controlled by billionaire Carlos Slim,
rose 1.4 percent.
    Chile's IPSA index rose the most in nearly two
weeks, adding 0.84 percent to 3,853.39, as shares of retailer
Falabella advanced 1.35 percent.
    
    Latin America's key stock indexes at 1521 GMT:
 Stock indexes                  Latest      Daily   YTD pct
                                              pct    change
                                           change  
 MSCI Latam                    3,083.35      1.79    -20.24
                                                   
 Brazil Bovespa               47,320.45      0.91    -22.36
                                                   
 Mexico IPC                   38,469.01       1.5    -11.98
                                                   
 Chile IPSA                    3,853.39      0.84    -10.42
                                                   
 Chile IGPA                   19,220.25      0.64     -8.78
                                                   
 Argentina MerVal              3,007.06      -0.2      5.35
                                                   
 Colombia IGBC                12,511.14      0.75    -14.98
                                                   
 Peru IGRA                    15,294.93     -0.22    -25.86
                                                   
 Venezuela IBC               987,565.13      1.14    109.48
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