* Brazil Bovespa up 0.64 pct, Mexico IPC rises 0.42 pct
SAO PAULO, Oct 28 Brazilian stocks rose for the
first session in four on Monday as shares of state-run oil
producer Petrobras jumped on news the company is
discussing a new fuel-pricing policy.
Mexico's IPC index gained for a second straight day,
while Chile's bourse crept higher.
Brazil's benchmark Bovespa stock index gained 0.64
percent to 54,498.85.
Late on Friday, Petroleo Brasileiro SA, as Petrobras is
officially known, said it is discussing a new fuel price
methodology to better align domestic prices with those abroad.
The company currently imports gasoline to satisfy local demand
while selling it at a loss at the government's insistence as a
means of controlling inflation.
Investors cheered the move, sending the company's preferred
shares up as much as 5 percent on Monday, with common shares
rising as much as 6.5 percent.
"We applaud (Petrobras') initiative to adopt a pricing
formula," wrote JPMorgan Securities analysts led by Caio
Carvalhal in an investor note Monday. "It is uncertain the level
of closeness to the international parity the formula would
bring, if approved, but any methodology should improve the
company's earnings predictability."
Shares of rival oil firm OGX Petroleo e Gas Participacoes SA
fell 13.8 percent, anchoring the Bovespa, with
investors eyeing a potential bankruptcy filing by the company.
OGX missed a $45 million interest payment to bondholders
earlier this month and is currently in a 30-day grace period
that expires Thursday.
The Bovespa index has risen for four straight months, with
shares of commodities producers boosted by a delay in monetary
policy tightening from the U.S. Federal Reserve.
Bank of America Merrill Lynch analysts see the Bovespa
reaching a near record-high of 70,000 next year as corporate
profit margins grow and the cost of additional government
intervention in the economy becomes too high, according to a
report on Friday.
Mexico's IPC index gained 0.42 percent, led by a 1.1
percent gain in shares of lender Grupo Financiero Banorte
and a 1.6 percent rise in rival firm Banco
Chile's IPSA index climbed 0.24 percent as shares of
retailer Falabella rose 0.5 percent.
Latin America's key stock indexes at 1440 GMT:
Stock indexes daily % YTD %
Latest change change
MSCI LatAm 3,468.25 0.57 -9.19
Brazil Bovespa 54,498.85 0.64 -10.59
Mexico IPC 40,844.18 0.42 -6.55
Chile IPSA 3,888.49 0.24 -9.60
Chile IGPA 19,140.29 0.2 -9.16
Argentina MerVal 5,616.96 1.64 96.79
Colombia IGBC 14,299.08 -0.12 -2.83
Peru IGRA 16,188.96 -0.05 -21.52
Venezuela IBC 2,162,506.9 2.56 358.71