Reuters logo
4 years ago
EMERGING MARKETS-Petrobras helps Brazil shares snap 3-day slump
October 28, 2013 / 10:23 PM / 4 years ago

EMERGING MARKETS-Petrobras helps Brazil shares snap 3-day slump

* Brazil Bovespa up 1.7 pct, Mexico IPC rises 1.11 pct

    MEXICO CITY, Oct 28 (Reuters) - 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 1.7 percent to 55,073.37.
    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 common shares up 9.83 percent.
    "We applaud (Petrobras's) initiative to adopt a pricing formula," JPMorgan Securities
analysts led by Caio Carvalhal wrote 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."
    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. The low rates in
the United States have spurred investors to seen higher returns in emerging markets.
    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 1.11 percent to close at 41,125.02, led by a 1.54 percent
gain in shares of telecoms giant America Movil and a 4.39 percent rise in conglomerate
    Chile's IPSA index climbed 0.15 percent, helped by gains in shares of miner Sociedad
Quimica y Minera de Chile.
    Latin America's key stock indexes at 2148 GMT:
    Stock indexes                       Latest    daily % change    year-to-date % change
MSCI LatAm        3,487.04           1.11                 -8.18
Brazil Bovespa           55,073.37           1.7                 -9.64
Mexico IPC                41,125.02           1.11                 -5.90
Chile IPSA                3,885.03           0.15                 -9.68
Chile IGPA               19,125.46           0.12                 -9.23
Argentina MerVal          5,470.71          -1                 91.67
Colombia IGBC             14,235.50          -0.56                 12.39
Peru IGRA                 16,235.15           0.24               -21.30
Venezuela IBC             2,210,571.27           4.84                 368.90

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below