EMERGING MARKETS-Brazil stocks gain on steelmakers and homebuilders

Wed Aug 28, 2013 12:04pm EDT

Related Topics

* Homebuilders PDG and MRV Enghenharia lead index's gains
    * Steelmakers gain on expected price increase
    * Brazil Bovespa up 0.68 pct, Mexico IPC up 0.05  pct

    By Lucas Iberico-Lozada
    SAO PAULO, Aug 28 (Reuters) - Brazilian stocks rose on
Wednesday as bargain-hunting investors pushed up shares of local
steelmakers and homebuilders.
    Mexico's IPC index edged up for the first time in six
sessions, while Chile's bourse was near flat.
    Concerns over a potential U.S.-led military strike on the
Syrian government of Bashar al-Assad drove world markets lower
on Tuesday as investors fled risky assets such as emerging
market equities for the relative safety of the U.S. dollar.
    "The impact of the [potential Syria strike] caused the
Brazilian market to reach a support level" in late trading on
Tuesday, said Rudimar Jose Joner Filho, a broker at Banrisul
Corretora in Porto Alegre, Brazil. "Traders have positioned
themselves to benefit from a short-term gain," he added.
    Brazil's benchmark Bovespa stock index rose 0.68
percent to 50,429.85, partially reversing a two-session round of
losses.
    Local homebuilders PDG Realty SA and MRV
Engenharia e Participacoes SA led the index's gains,
with bumps of 2.3 percent and 4 percent, respectively.
    Steelmakers made gains after Goldman Sachs Group analysts
signaled on Wednesday that they expect flat-steel producers to
raise prices on their products targeted to car manufacturers.
 
    Shares of flat-steel producer Usinas Siderurgicas de Minas
Gerais, known as Usiminas, rose 2.5 percent, while
shares for rival Cia Siderurgica Nacional rose 1.5
percent.
    Long-steel producer Gerdau SA gained 1 percent in
share price.
    State-run oil company Petroleo Brasileiro SA,
known as Petrobras, gained 1 percent following a rise in global
oil prices on concerns that a strike on Syria could spill over
into the rest of the Middle East.
    Shares of port operator LLX Logistica SA rose
more than 3 percent after Brazilian tycoon Eike Batista
announced his resignation as chairman of the company on
Wednesday. 
    LLX shares have fallen by 29.5 percent so far this year.
    Mexico's IPC index was near flat as a gain for
retailer Wal Mart de Mexico was offset by losses
for telecommunications giant America Movil.
    Shares of cement producer Cemex rose 0.7 percent
after Swiss rival Holcim announced that it would pay
the Mexican firm 70 million euros in cash as part of a
cost-cutting plan to exchange some assets and combine others.
 
    Chile's IPSA index rose 0.2 percent to 3,565.31, its
second session of gains in eleven.
    Shares of bottling firm Embotelladora Andina,
one of Latin America's largest Coca-Cola distributors, rose as
much as 0.2 percent after the company posted a 24.2 percent
increase in second-quarter net profit late Tuesday.
 
    
    Latin America's key stock indexes at 1529 GMT:
 Stock indexes                                 daily %    YTD %
                         Latest                 change   change
 MSCI LatAm                      3,057.63         1.65    -20.8
                                                        
 Brazil Bovespa                 50,429.85         0.68   -17.26
                                                        
 Mexico IPC                     39,676.12         0.05    -9.22
                                                        
 Chile IPSA                      3,565.31          0.2   -17.11
                                                        
 Chile IGPA                     17,722.70         0.23   -15.89
                                                        
 Argentina MerVal                3,973.14         3.25    39.20
                                                        
 Colombia IGBC                  13,693.49         0.91    -6.95
                                                        
 Peru IGRA                      16,541.00         0.21   -19.82
                                                        
 Venezuela IBC               1,325,633.20         0.08   181.19
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