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EMERGING MARKETS-Pension funds boost Mexican stocks; U.S. fears hurt Brazil
September 25, 2013 / 9:56 PM / 4 years ago

EMERGING MARKETS-Pension funds boost Mexican stocks; U.S. fears hurt Brazil

* Telecom stock declines, U.S. debt concerns hurt Bovespa
    * Mexico IPC up 1.25 pct, Chile IPSA down 0.41 pct

    MEXICO CITY, Sept 25 (Reuters) - Mexican stocks surged on
Wednesday, helped by big institutional investors adjusting their
portfolios as the third quarter nears its conclusion, while U.S.
budgetary and fiscal wranglings hurt Brazil. 
    Mexico's IPC index ended the day up 1.25 percent,
while Brazil's benchmark Bovespa stock index was 0.31
percent off at 54,261.11 points. 
    Worries over a potential U.S. government shutdown, and mixed
signals on the future of U.S. monetary policy that has given
support to emerging market equities, kept foreign investors in
Brazil on edge. 
    Fueling some of those market concerns, U.S. Treasury
Secretary Jack Lew warned Congress on Wednesday that the U.S.
would exhaust its borrowing capacity no later than Oct. 17, at
which point it would have only about $30 billion in cash on
    Mexican stocks, however, enjoyed a strong day of trading
thanksto big purchases from Mexico's pension funds, traders
    Shares in telecoms giant America Movil, controlled
by billionaire Carlos Slim, drove gains. Cement producer Cemex
, which on Wednesday announced an offering of senior
secured notes, rose 0.88 percent. 
    Shares of Brazil's Grupo Oi SA tumbled on concerns that
rising debt and operational shortcomings will hamper the ability
of the nation's No. 4 mobile carrier to compete with rivals.
Common shares of Oi fell nearly 8 percent.
    Telefonica SA agreed this week to boost its stake
in Telecom Italia SpA in a $1.2 billion deal, in a
plan that might lead to the sale of the latter's Brazilian
mobile phone operations. Telefonica and Telecom Italia are Oi's
rivals in Brazil in the cellphone and Internet data markets.
    In Chile, a 1.07 percent fall in shares of retailer
Falabella weighed on the IPSA index, which ended the day
down 0.41 percent at 3,902.07 points.   
     Latin America's key stock indexes at 2118 GMT:
 Stock indexes                            daily %  year-to-da
                       Latest              change        te %
 MSCI LatAm                  3,386.97       -0.81      -10.82
 Brazil Bovespa             54,261.11       -0.31      -10.98
 Mexico IPC                 41,724.03        1.25       -4.53
 Chile IPSA                  3,902.07       -0.41       -9.28
 Chile IGPA                 19,150.19       -0.32       -9.11
 Argentina MerVal            4,798.45       -0.35       68.11
 Colombia IGBC              14,167.21       -0.02       11.85
 Peru IGRA                  16,003.32        0.61      -22.42
 Venezuela IBC           1,848,697.30        0.65      292.14

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