EMERGING MARKETS-Brazil stocks rally as post-holiday trading heats up

Tue Jun 24, 2014 1:49pm EDT

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RIO DE JANEIRO, June 24 (Reuters) - Brazil's benchmark stock
index jumped 1 percent on Tuesday as foreign investors snapped
up shares after two sessions of losses while a Wall Street
benchmark set a fresh record high, boosting Latin American
markets in general.
    Investor appetite for Brazilian stocks was particularly
strong as trading volumes increased after a prolonged market
lull due to a national holiday on Thursday and a World Cup
soccer match on Monday. Brazilian markets closed early for the
match between Brazil and Cameroon on Monday.
    Brazil's Bovespa index rose 1 percent to 54,757,
leading MSCI's benchmark stock index for Latin America
 0.4 percent higher. Mexico's IPC index 
was little changed.
    "We may be seeing renewed inflows to Brazil after the
holiday and the shortened trading session, with the Bovespa
seeking the 55,000-level," said João Pedro Brugger, an analyst
with Leme Investimentos in Florianópolis, Brazil.
    Brazil's central bank on Tuesday more than doubled to $12
billion its forecast for foreign inflows to Brazilian stocks
this year. In 2013, foreign investors purchased a net $11.64
billion worth of Brazilian shares.
    Investors are betting that President Dilma Rousseff, who has
been strongly criticized for her interventionist policies, will
face tough competition during October's presidential elections,
increasing the chances of a more market-friendly government in
2015.
    Shares of state-run companies seen benefiting most from a
change in government rose sharply. Petroleo Brasileiro SA, or
Petrobras, which is forced by the government to sell
fuels at a loss in the domestic market, jumped over 2 percent,
contributing the most to the rise of the Bovespa index.
    Meanwhile, other Latin American bourses gained slightly as
key Wall Street stock indexes hit fresh records.
    In currency markets, the Brazilian real  and
the Mexican peso lost 0.3 and 0.1 percent, respectively,
as the U.S. dollar gained broadly on the back of
stronger-than-expected U.S. housing and consumer confidence
data, which increased expectations of a more hawkish Federal
Reserve. 
    
 
    
 Key Latin American stock indexes and currencies at 1725 GMT:
    
 Stock indexes                            Daily     YTD 
                               Latest       pct      pct
                                         change   change
 MSCI Emerging Markets        1,048.26     0.57     3.95
                                                 
 MSCI LatAm                   3,413.13     0.41     6.19
                                                 
 Brazil's Bovespa             54,757.1     1.01     6.31
 Mexico's IPC                42,921.63     0.01     0.46
 Chile's IPSA                 3,893.05     0.34     5.24
 Chile's IGPA                 18,990.3     0.28     4.19
 Argentina's MerVal           7,977.07    -0.1     47.97
                                                 
 Colombia's IGBC             14,280.88    -0.08     9.25
 Peru's IGRA                 16,567.44    -0.42     5.17
                                                        
 Currencies                               Daily     YTD 
                                            pct      pct
                                Latest   change   change
 Brazil real                    2.2227    -0.24     6.03
 Mexico peso                   13.0427    -0.12    -0.10
 Chile peso                      551.8     0.09    -4.66
 Colombia peso                1,888.94    -0.39     2.28
 Peru sol                        2.803     0.00    -0.36
 Argentina peso (interbank)     8.1300     0.03   -20.14
                                                 
 Argentina peso (parallel)       11.94    -0.34   -16.25
                                                 
 
 (Reporting by Walter Brandimarte in Rio de Janeiro and Priscila
Jordão in São Paulo)
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