January 17, 2018 / 3:21 PM / 8 months ago

EMERGING MARKETS-Brazil stocks rise on foreign inflows, one-time news events

    SAO PAULO, Jan 17 (Reuters) - Brazil's benchmark Bovespa
equities index registered strong gains on Wednesday, breaching
the 80,000-point mark for the second time, amid strong inflows
of foreign capital and industry-related news that lifted some
major stocks.
    In the first nine sessions of 2018, the Bovespa registered
3.584 billion reais ($1.11 billion) in inflows, well above the
2.2 billion reais registered in the same period last year.
Analysts and investors say this trend is continuing, as high
foreign liquidity levels and a continually improving Brazilian
economy draw in capital.
     "Given that foreign assets are rather exhausted and, among
emerging markets, Brazil was a little behind, we have this
inflow of capital," said Carlos Eduardo Eichhorn, head of
investment management at Mapfre Investimentos.
    Brazil's benchmark Bovespa index had climbed 0.57
percent in early afternoon trade, while the nation's real
currency ticked up a modest 0.03 percent.
    Brazil's Cia de Saneamento Basico do Estado de São Paulo
, known as Sabesp, was among the big winners. Its
shares shot up nearly 4 percent after regulators released
specifics for a new tax regime that could favor the water and
sewage service provider.
    Shares of state-run oil major Petróleo Brasileiro SA
, or Petrobras, climbed almost 2 percent, after the
government said it was setting up a committee to resolve an oil
rights dispute dating back to 2010.
    Shares in Carrefour Brasil, one of the nation's
two biggest food retailers, rose more than 2 percent after
reporting a 5.3 percent increase in fourth-quarter gross sales
on Tuesday. 
    MRV Engenharia e Participações SA, Latin
America's largest homebuilder by units sold, added about 1.5
percent after reporting contracted sales jumped 34.2 percent in
the fourth quarter.
     ($1 = 3.23 reais)
       
Key Latin American stock indexes and currencies at 1445 GMT:

 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets           1219,74      0,15      5,13
                                                    
 MSCI LatAm                      3021,74      0,68      6,12
                                                    
 Brazil Bovespa                 80285,59      0,57      5,08
                                                    
 Mexico IPC                     49547,26      0,11      0,39
                                                    
 Chile IPSA                      5761,79      0,28      3,54
                                                    
 Chile IGPA                     28971,73      0,21      3,54
                                                    
 Argentina MerVal               33851,60      0,98     12,59
                                                    
 Colombia IGBC                  11779,23     -0,09      3,59
                                                    
 Venezuela IBC                   2351,55      1,17    -92,58
                                                    
                                                            
 Currencies                                daily %     YTD %
                                            change    change
                                  Latest            
 Brazil real                      3,2273      0,03      2,66
                                                    
 Mexico peso                     18,7300      0,22      5,17
                                                    
 Chile peso                       604,07     -0,28      1,75
                                                    
 Colombia peso                    2857,3      0,20      4,36
 Peru sol                           3,21      0,00      0,84
                                                    
 Argentina peso (interbank)      18,9300     -0,16     -1,74
                                                    
 Argentina peso (parallel)         19,57      0,15     -1,74
                                                    
 
 (Reporting by Gram Slattery; Editing by Susan Thomas)
  
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