EMERGING MARKETS-Steelmakers, miner Vale boost Brazilian stocks
MEXICO CITY Dec 5 (Reuters) - Brazilian stocks rose for the first time in four days on Thursday, buoyed by steelmakers on a report they are seeking to hike prices, while miner Vale climbed after announcing plans to sell a stake in its coal operations.
Brazil's Bovespa index rose 1.14 percent to 50,787.63 points.
The country's steelmakers are proposing to boost steel prices by 7 to 10 percent for local automakers, a source familiar with the negotiations told Reuters.
Talks over what would be the first price rise in more than two years have been "very difficult" as automakers eye weaker domestic sales, the source said on condition of anonymity, adding that talks are likely to continue into 2014.
Shares of Usinas Siderugicas de Minas Gerais SA, which makes flat steal for the auto industry, jumped 7.53 percent, adding most to the index's gains, while steelmaker Companhia Siderurgica Nacional SA rose 3.82 percent.
Shares of Vale gained 1.42 percent after the miner said it plans to sell a 15 to 25 percent stake in its coal operations and has interest from potential partners including coal buyers.
Vale, the world's largest producer of iron ore, said it hopes the partnership in coal, along with the sale of a stake in its Mozambican rail link and in fertiliser assets, can bring funding, cut capital commitment and help mitigate risk.
The Bovespa is still down more than 16 percent for the year, as concerns about the fiscal health and growth prospects of Latin America's No. 1 economy weigh, fanning fears of a sovereign ratings downgrade next year.
Mexico's IPC index lost 0.22 percent to 41,910.08 points, dragged down by shares of telecoms giant America Movil and broadcaster Televisa.
The two companies said on Thursday they were under review by the telecoms watchdog, which is determining whether they are dominant players in the sector, a tag that would open them up to tougher regulation.
The telecoms watchdog, created by President Enrique Pena Nieto's overhaul of the sector, has powers to break up telecoms companies that are found to be impeding competition, although those powers are only intended to be used as a last resort.
Shares of America Movil fell 1.69 percent and Televisa shed 2.1 percent, contributing most to the index's losses.
- Exclusive: Angry with Washington, 1 in 4 Americans open to secession
- U.S. immigration protesters drop U.S. border blockade plan
- About 60,000 Syrian Kurds flee to Turkey from Islamic State advance |
- Secret Service investigates after man jumps White House fence, reaches doors
- Kentucky firefighter dies after ice bucket challenge accident