EMERGING MARKETS-Brazil stocks climb as debt talks eyed, MMX jumps

Tue Oct 15, 2013 10:37am EDT

Related Topics

* Brazil Bovespa rises 0.21 pct, Mexico IPC nearly unchanged

    BUENOS AIRES, Oct 15 (Reuters) - Brazil's benchmark stock
index edged higher on Tuesday on signs that U.S. policymakers
are getting closer to a deal to avoid a potential debt default.
    The MSCI Latin American stock index rallied
for a fourth straight session, adding 0.21 percent.
    A sharp rise in mining firm MMX supported gains in Brazil's
Bovespa index, while Mexico's IPC index was
little changed.
    Leading U.S. senators Harry Reid and Mitch McConnell ended a
full day of negotiations on Monday with optimistic
proclamations, sparking hope among investors that a deal could
be reached to reopen shuttered federal agencies and prevent a
default on federal debt, which could seriously shake confidence
in the global economy. 
    "The expectation remains that we'll see a resolution to
this...even if it is for the short-term," said Joao Brugger, an
analyst with Leme Investimentos in Florianopolis, Brazil. 
    The Bovespa rose for the fifth straight day, adding 0.21
percent to 54,284.95.
    "We've also seen a bit of a technical recovery after the
index hit a support at 52,000 points (last week)," Brugger
added.
    Shares of mining firm MMX Mineração e Metálicos SA
, part of embattled tycoon Eike Batista's Grupo EBX
conglomerate, rose as much as 18.2 percent, contributing most to
the index's rise.
    The company late on Monday announced that Batista would cede
control of an MMX iron ore port to Dutch energy firm Trafigura
Beheer BV and an Abu Dhabi sovereign wealth fund in a $996
million deal. MMX will keep a 35 percent stake in the port,
which will see additional investment from the group.
 
    "We believe this sale is very positive for MMX, which is now
without debts and with a significant share of the port's
(earnings)," analysts at Sao Paulo brokerage Planner wrote in an
investor note Tuesday.
    Shares of homebuilders declined after the sector's biggest
firm, Cyrela Brazil Realty SA, reported a drop in new
project launchings and sales in the third quarter compared with
the same period last year.
    Shares of Cyrela fell 1.2 percent, while rival Gafisa SA
 shed 3.3 percent.
    Mexico's IPC index hovered near unchanged territory
through most of the session, as a 0.4 percent gain in lender
Grupo Financiero Banorte offset a 0.8 percent
decline in conglomerate Alfa. 
    Chile's IPSA index fell for the first session in
four, losing 0.18 percent as shares of lender BCI 
dropped 1.9 percent. 
    
    Latin America's key stock indexes at 1358 GMT:
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,441.89      0.21     -9.56
                                                   
 Brazil Bovespa               54,284.95      0.21    -10.94
                                                   
 Mexico IPC                   40,861.01     -0.05     -6.51
                                                   
 Chile IPSA                    3,837.93     -0.18    -10.77
                                                   
 Chile IGPA                   18,916.56     -0.12    -10.22
                                                   
 Argentina MerVal                  0.00         0   -100.00
                                                   
 Colombia IGBC                14,251.46      0.08     -3.16
                                                   
 Peru IGRA                    15,422.79     -0.29    -25.24
                                                   
 Venezuela IBC               1,870,426.      1.67    296.75
                                      5
FILED UNDER: