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EMERGING MARKETS-Latam stocks stage modest recovery from multimonth lows
June 13, 2013 / 4:01 PM / 4 years ago

EMERGING MARKETS-Latam stocks stage modest recovery from multimonth lows

* Brazil's Bovespa, Mexico's IPC nearly 0.5 pct up
    * OGX drops to 1 real as Batista sells shares

    By Danielle Assalve and Noe Torres
    SAO PAULO, June 13 (Reuters) - Latin American stocks
recovered modestly on Thursday from a sharp-selloff in the
previous session, tracking global shares  higher on
stronger-than-expected economic data in the United States.
    Mexico's benchmark IPC index, which hit a
one-year-low on Wednesday, gained 0.49 percent, while Brazil's
Bovespa index rose 0.45 percent after dropping past
50,000 points for the first time since 2011 in the prior
session.    
    Retail sales rose and jobless claims dropped in the United
States, data showed, suggesting Mexico's top trade partner was
heading to a more solid recovery. 
    Other Latin American indexes were up from the previous
session, with the MSCI LatAm rising 0.8 percent.
    "It is normal to see a tentative recovery given all the
ground Brazilian shares lost in recent days," said Ariovaldo
Santos, head of equity trading at H.Commcor brokerage in Sao
Paulo. "The U.S. market will determine the mood of local shares
even more intensely from now on."
    Shares of Wal-Mart de Mexico, the country's
largest retailer known as Walmex, gained 0.48 percent to 36.48
pesos. Shares of mining giant Grupo Minero were
also up, rising 0.18 percent to 37.15 pesos.
    In Brazil, BM&FBovespa shares gained 0.71 percent
to 12.69 reais after the government scrapped a tax on
foreign-exchange derivatives late on Wednesday, the latest move
to lift capital controls and bolster the currency.
 
    Shares of OGX, the oil company controlled by
Brazilian billionaire Eike Batista, dropped 3.85 percent to 1.00
real after a securities filing confirmed Batista sold part of
his shares in recent weeks, raising doubts about his ability to
raise money for the company's investment plans.
    "According to our estimates, the company should run out of
cash by mid-2014," said Christian Audi and Vicente Falanga Neto,
analysts at Santander, in a research note.
    Latin America's key stock indexes at 1513 GMT:
    
 Stock indexes                               daily %      YTD %
                                Latest        change     change
 MSCI LatAm                      3,292.69       0.78     -13.97
                                                      
 Brazil Bovespa                 49,399.80       0.45     -18.95
                                                      
 Mexico IPC                     39,674.73       0.49      -9.22
                                                      
 Argentina MerVal                3,233.18      -0.11      13.27
                                                      
 Colombia IGBC                  13,156.36       0.50     -10.60
                                                      
 Peru IGRA                      15,857.64       0.61     -23.13
                                                      
 Venezuela IBC                 852,420.50       -0.1      80.81

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