Reuters logo
EMERGING MARKETS-Brazil stocks gain on outlook for miner Vale
February 28, 2013 / 10:51 PM / 5 years ago

EMERGING MARKETS-Brazil stocks gain on outlook for miner Vale

* Vale expects better profit this year after posting Q4 loss
    * U.S. GDP data disappoints, weighs on Petrobras
    * Brazil's Bovespa gains 0.26 pct, Mexico's IPC up 0.80 pct

    By Asher Levine and Danielle Assalve
    SAO PAULO, Feb 28 (Reuters) - Latin American stock indexes
rose on Thursday with Brazilian shares advancing on iron ore
miner Vale's improved profit outlook, though concerns about U.S.
economic growth weighed on oil producers.
    Other regional bourses also firmed. Chile's IPSA index
 rose after data suggested the country's economic outlook
remains strong, while Mexico's IPC index gained for a
second straight session.
    Brazil's benchmark Bovespa stock index added 0.26
percent to close at 57,424.29 points.
    Nonetheless, despite the Bovespa climbing for the third
straight session, few analysts and traders expected a
longer-term rally.
    "The main factor is the worsening of perception about risk
in this country," said Rodrigo Melo, an economist at Maua
Sekular Investimentos in Sao Paulo. "Apparently the economy (in
Brazil) is improving, but there is still little evidence of a
favorable growth environment emerging and that is affecting the
    Gains in the Bovespa were limited by shares of
state-controlled oil company Petroleo Brasileiro SA,
known as Petrobras, which fell 1.19 percent. Competitor OGX
 saw its share price slide 4.26 percent.
    Analysts said disappointing U.S. fourth-quarter growth data
on Thursday weighed on widely-traded shares such as Petrobras,
which tend to attract a large proportion of foreign investors
and move in tandem with the outlook for the global economy.
    Vale's preferred shares jumped 3.1 percent,
contributing the most to the index's narrow overall gain.
    The mining company's shares opened lower on Thursday after
Vale posted its first quarterly loss in 10 years late Wednesday.
They rebounded later in the session after the firm said it
expects higher iron ore prices and gold production to bring a
profit this year.  
    In Mexico, the benchmark IPC index rose for the
second straight day, adding 0.80 percent to end at 44,120.99
    Homebuilder Urbi shed 9.45 percent after the
company reported a 63 percent drop in fourth-quarter profit late
on Wednesday, citing a slump in sales and higher financing
    Bottling and retail firm Femsa fell 0.86
percent after the company said fourth-quarter profit, which rose
77 percent, was boosted by a one-off gain in earnings from Dutch
brewer Heineken, in which Femsa holds a roughly 20
percent stake.
    Chile's IPSA index gained 0.84 percent to 4,558.46
as shares of retailer Falabella added 0.94 percent.
    Data on Thursday suggested the outlook for Chile's economy
remains strong, with manufacturing output beating expectations,
unemployment at a six-year low and copper production rising.

    Latin America's key stock indexes at 2222 GMT:
 Stock indexes                     Latest         Pct change
 MSCI LatAm                          3,824.58           0.77
 Brazil Bovespa                     57,424.29           0.26
 Mexico IPC                         44,120.99           0.80
 Chile IPSA                          4,558.46           0.84
 Chile IGPA                         22,219.95           0.71
 Argentina MerVal                    3,048.55          -3.49
 Colombia IGBC                      14,838.13          -0.02
 Peru IGRA                          20,611.68          -0.14
 Venezuela IBC                     621,336.19           0.39

Our Standards:The Thomson Reuters Trust Principles.
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