EMERGING MARKETS-Brazil stocks rise on election poll, Santander Brasil soars

Tue Apr 29, 2014 11:56am EDT

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SAO PAULO, April 29 (Reuters) - Brazilian stocks rose the
most in nearly two weeks on Tuesday while the nation's currency
returned early gains after an election poll showed voter support
was declining for President Dilma Rousseff ahead of October's
election.
    The broader MSCI Latin American stock index 
was also up, with stock markets in Mexico and Chile posting
modest gains.
    Voter support for Rousseff has fallen on concerns about the
economy and a scandal surrounding state-run oil company Petroleo
Brasileiro SA, a new poll showed on Tuesday.
 
    Brazil's benchmark Bovespa stock index added to
early gains after the poll was released, led by shares of
state-run companies. Many investors have criticized the Rousseff
administration for using state firms to further her
macroeconomic agenda at the expense of minority shareholders.
    "Every poll in which Dilma doesn't advance ... ends up
supporting the stock market," said Fausto Gouveia, an economist
with Legan Asset in Sao Paulo. 
    Gouveia warned that it was too early to make a call on the
election's outcome, but said if Rousseff's popularity continued
to decline, the market should continue to rally, bolstered by
stop-loss operations among short-sellers.
    Units of lender Banco Santander Brasil SA soared
16.8 percent after Spanish parent company Banco Santander SA
 said it launched an offer to buy 25 percent of the
Brazilian bank it does not already own. 
    Other stock markets in the region advanced as well, with
Mexico's IPC index erasing two days of losses and Chile's
IPSA index capping a seven-day losing streak.
    In currency markets, the Brazilian real traded flat,
giving up an early advance against the dollar following the
election poll. 
    The Colombian and Mexican pesos  both
strengthened slightly against the dollar, while Chile's peso
 weakened following lower prices for copper, the
country's main export. 
    
    Key Latin American stock indexes and currencies at 1522 GMT:
    
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets           1000.52      0.75     -0.95
                                                    
 MSCI LatAm                      3273.13      1.61      0.64
                                                    
 Brazil Bovespa                 52055.25      1.31      1.06
                                                    
 Mexico IPC                      40455.8       0.8     -5.32
                                                    
 Chile IPSA                         3841      0.74      3.83
                                                    
 Chile IGPA                     18900.05      0.59      3.69
                                                    
 Argentina MerVal                6853.86      0.93     27.13
                                                    
 Colombia IGBC                  13431.67      0.49      2.76
                                                    
 Peru IGRA                       15121.4      0.18     -4.01
                                                    
 Venezuela IBC                   2334.04      -0.6    -14.71
                                                    
                                                            
 Currencies                                daily %     YTD %
                                            change    change
                                  Latest            
 Brazil real                      2.2210      0.17      6.11
                                                    
 Mexico peso                     13.0983      0.17     -0.52
                                                    
 Chile peso                        560.9     -0.02     -6.20
                                                    
 Colombia peso                   1933.21      0.28     -0.06
 Peru sol                          2.806      0.07     -0.46
                                                    
 Argentina peso (interbank)       8.0000      0.03    -18.84
                                                    
 Argentina peso (parallel)         10.57      1.23     -5.39
                                                    
 
 (Reporting by Asher Levine and Priscila Jordao; Writing by
Asher Levine; Editing by Jeffrey Benkoe)
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