EMERGING MARKETS-Brazil stocks extend rise on China infrastructure outlook

Tue Jul 23, 2013 11:37am EDT

Related Topics

* China to boost infrastructure investment -top official
    * Brazil Bovespa up 1.1 pct, Mexico IPC up 0.49 pct

    By Lucas Iberico-Lozada
    SAO PAULO, July 23 (Reuters) - Brazil's benchmark Bovespa
stock index gained on Tuesday, a day after a top Chinese
official stated his government's intent to bolster domestic
infrastructure investment.
    Mexico's IPC index sought to overcome technical
resistance at 40,300 points, while Chile's bourse nudged
higher.
    Chinese media reported on Monday that Vice Premier Zhang
Gaoli announced that China will cushion a market slowdown by
strengthening domestic infrastructure investment.
 
    China is Brazil's biggest trading partner and a key
purchaser of Latin American commodities exports such as
iron-ore, soy, copper and petroleum.
    The Bovespa rose 1.1 percent on Tuesday to 49,058.82
points, its eighth session of gains in ten. The index  is on
track to post its third straight weekly gain as Brazilian stocks
track a recent rise in U.S. markets.
    "The Bovespa is riding the inertia of recent gains in the
world markets," said Leandro Silvestrini, an analyst at Intrader
in Sao Paulo. "Since most Brazilian stocks are quite weakened
and cheap right now, any gains tend to be strong. So long as
there isn't any bad news, the market should keep rising."
    Contributing most to the index's gains were shares of OGX
Petroleo e Gas Participacoes SA, the oil company
controlled by Brazilian billionaire Eike Batista, and mining
giant Vale SA, which posted gains of 7.5 percent and
1.2 percent, respectively.
    Shares of Vale, which counts China as its biggest customer,
are trading at their highest price in over a month.
    Shares of JBS SA, the world's largest meat
processor, rose 0.6 percent after the company said in a market
filing on Tuesday that its board renewed a buyback for up to 10
percent of its outstanding shares on July 4. 
    Mexico's IPC index posted a 0.49 percent gain as
shares of bottling giant Femsa rose 1.9 percent. 
    The IPC has been range-bound between just over 40,600 points
and just below 39,700 points for most of the past two weeks.
    Shares of copper miner and railroad operator Grupo Mexico
 slipped 0.35 percent after the company reported a
54 percent drop in second-quarter profit on Tuesday.
 
    Chile's IPSA index bumped up just 0.23 percent, as a
1.4 percent loss in shares of paper and pulping company CMPC SA
 offset a 0.5 percent gain by energy giant Endesa SA
.
    
    Latin America's key stock indexes at 1511 GMT:
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,249.13      1.11    -15.39
                                                   
 Brazil Bovespa               49,058.82         1    -19.51
                                                   
 Mexico IPC                   40,312.72      0.49     -7.76
                                                   
 Chile IPSA                    3,869.90      0.26    -10.03
                                                   
 Chile IGPA                   19,179.17       0.2     -8.98
                                                   
 Argentina MerVal              3,449.09     -0.03     20.84
                                                   
 Colombia IGBC                13,379.70      0.35     -9.08
                                                   
 Peru IGRA                    15,497.68     -0.17    -24.88
                                                   
 Venezuela IBC               1,249,789.         0    165.10
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