June 29, 2018 / 4:05 PM / 2 months ago

EMERGING MARKETS-Brazil equities rally amid Wall Street gains, political calm

    SAO PAULO, June 29 (Reuters) - Brazilian equities jumped
more than 1.5 percent on Friday as solid gains on Wall Street
and relative political calm helped lure investors back into
local stocks, many of which have fallen dramatically in recent
weeks.
    Emerging markets worldwide have been hit hard by concern
about a global trade war, with Brazil's benchmark Bovespa index
 among the major losers, falling almost 15 percent in the
second quarter alone. Domestic issues, such as a highly
uncertain presidential election scheduled for October, have also
weighed on domestic equities.
    But in recent weeks, investors have often jumped back into
Brazilian stocks during times of geopolitical calm, amid bets
that some sectors are oversold. 
    Friday's rally was also spurred by traders looking to boost
their portfolios before the end of the second quarter, some
market participants said.
    "The market is taking advantage of this moment of strength
abroad to improve portfolios' results at the end of the month,
which coincides with the end of the quarter," said Ari Santos,
head of the Bovespa desk at Sao Paulo brokerage H.Commcor.
    The Bovespa had climbed some 1.52 percent by mid-day,
following a 1.63 percent gain on Thursday.
    Elsewhere throughout Latin America, equities markets were
also up, with Mexico's IPC index and Chile's IPSA index
 climbing 0.72 percent and 0.8 percent, respectively,
buoyed by a strong day on Wall Street, where the Dow Jones
Industrial Average was up over 1 percent in morning
trade.
    The Bovespa's biggest gainer was B2W Cia Digital SA
, Brazil's No. 1 e-commerce firm by most measures,
which jumped some 5.8 percent after analysts at Morgan Stanley
hiked their price target on the stock to 27 reais from 21 reais.

    Shares in meatpacker JBS SA climbed 2 percent
after newsmagazine Veja reported that controlling shareholder
Joesley Batista was negotiating the sale of a major stake to a
Qatari sovereign wealth fund, news which JBS subsequently
denied.
    Brazil's major telecoms stocks, Telefonica Brasil SA
 and TIM Participações SA, were also
performing well, climbing 1.6 percent and 1.9 percent,
respectively. Reuters reported on Thursday that competitor
Nextel had been put on the block, opening the door to
consolidation in the crowded sector.
    In currency markets, the big mover was the beleaguered
Argentine peso, which weakened over 2.5 percent
against the dollar to a new record low amid continued
uncertainty about the local economy.
     
Key Latin American stock indexes and currencies at 1511 GMT:
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1069.62      2.19     -9.65
                                                  
 MSCI LatAm                    2472.46      1.44    -13.82
                                                  
 Brazil Bovespa               72856.20      1.52     -4.64
                                                  
 Mexico IPC                   47371.19      0.72     -4.02
                                                  
 Chile IPSA                    5299.66       0.8     -4.76
                                                  
 Chile IGPA                   26820.46      0.64     -4.15
                                                  
 Argentina MerVal             26906.67      0.44    -10.51
                                                  
 Colombia IGBC                12371.26      0.45      8.80
                                                  
 Venezuela IBC                88228.12      2.58   6884.83
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.8499      0.12    -13.94
                                                  
 Mexico peso                   19.6375      0.37      0.31
                                                  
 Chile peso                      650.5     -0.22     -5.51
                                                  
 Colombia peso                  2933.9      0.39      1.64
 Peru sol                        3.276      0.00     -1.19
                                                  
 Argentina peso                28.8500     -2.53    -35.53
 (interbank)                                      
                                                  
 Argentina peso                   28.5     -1.23    -32.53
 (parallel)                                       
                                                  
 


 (Reporting by Gram Slattery; Additional reporting by Flavia
Bohone
Editing by Susan Thomas)
  
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