December 4, 2012 / 4:25 PM / in 5 years

EMERGING MARKETS-Brazil homebuilders rise on tax breaks

* Brazil government cuts taxes for homebuilders
    * Share swings muted in day with few indicators
    * Brazil Bovespa gains 0.18 pct, Mexico IPC flat

    By Asher Levine
    SAO PAULO, Dec 4 (Reuters) - Brazilian stocks edged higher
on Tuesday, with shares of homebuilders rallying after Brazil's
government announced a payroll tax exemption for the sector.
    Chile's bourse slipped its most in nearly two weeks
while Mexico's IPC index remained little changed.
    Brazil's benchmark Bovespa index rose 0.18 percent,
driven by gains in homebuilders. Shares of PDG Realty SA
 rose nearly 5 percent. Rivals Gafisa SA 
and MRV Engenharia SA rose 5.6 percent and 5 percent,
respectively.   
    The companies' shares rallied after Finance Minister Guido
Mantega announced the new tax break for the homebuilders on
Tuesday, in a move aimed at spurring a sluggish economic
recovery. 
    "The market is reacting positively, as investors are always
keeping their eyes open for new measures from the government,
which is trying to revive growth," said Alain Oliveira, an
analyst with Futura Investimentos in Salvador, Brazil.
    Brazil's economic recovery has been much slower than
expected, with government data on Friday showing Brazil's gross
domestic product expanded just 0.6 percent in the third quarter
compared with the second quarter.
    Mexico's IPC index was little changed at 42,298.79 as a 0.75
percent gain by retail giant Wal-Mart de Mexico 
helped offset a 0.4 percent fall in shares of telecommunications
firm America Movil.
    Chile's IPSA index dropped 0.45 percent as retailer
Falabella and fertilizer, lithium and iodine producer
Soquimich both slipped 0.8 percent. 

    Latin America's key stock indexes at 1528 GMT:
 Stock indexes                           daily %      YTD %
                          Latest          change     change
 MSCI LatAm                  3,595.06      -0.13      -0.07
                                                  
 Brazil Bovespa             58,307.18       0.18       2.74
                                                  
 Mexico IPC                 42,298.79      -0.06      14.08
                                                  
 Chile IPSA                  4,139.86      -0.45      -0.90
                                                  
 Chile IGPA                 20,323.04       -0.3       0.96
                                                  
 Argentina MerVal            2,470.13       2.08       0.30
                                                  
 Colombia IGBC              14,292.83       0.17      12.85
                                                  
 Peru IGRA                  20,249.22      -0.21       3.98
                                                  
 Venezuela IBC             409,680.22       0.48     250.05

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