September 15, 2017 / 5:06 PM / a year ago

EMERGING MARKETS-Brazil stocks set fresh record high as reform hopes undeterred

    By Bruno Federowski
    SAO PAULO, Sept 15 (Reuters) - Brazilian stocks touched an
all-time high on Friday as traders remained confident that
embattled President Michel Temer will implement market-friendly
reforms despite new corruption charges against him.
    Temer on Thursday was charged with obstruction of justice
and racketeering, the second set of accusations against him in
as many months. In a statement, he strongly rejected all
allegations of wrongdoing.
    Still, traders expect lawmakers to clear him of the charges,
just as they did in August, paving the way for the approval of
austerity measures such as a reform of the social security
system that is seen as key to boost long-term economic growth.
    "The new charges were widely expected and are unlikely to
prosper," Correparti brokerage trader Jefferson Rugik said.
    That conviction has fueled a rally in Brazilian markets in
recent weeks that drove the benchmark Bovespa index past
the psychological 75,000-point milestone for the first time
    Blue-chip shares and state-owned companies, such as Centrais
Elétricas Brasileiras SA, a state private utility
that the government intends to sell off, have led the advance.
    Shares of power utility Cia Energética de São Paulo SA
, however, slid a day after the São Paulo state
government suspended its privatization and were last down over 5
    The Brazilian real seesawed while Latin American
currencies were mostly rangebound. The Chilean peso
weakened 0.35 percent as traders unwound bullish bets on the
currency ahead of local holidays on Monday and Tuesday of next
    Key Latin American stock indexes and currencies at 1650 GMT:
 Stock indexes                   Latest     Daily   YTD pct
                                             pct    change
 MSCI Emerging Markets           1,102.08      0.2    27.56
 MSCI LatAm                      2,981.18     0.77    26.39
 Brazil Bovespa                 75,398.23     0.99    25.19
 Mexico S&P/BVM IPC             49,909.30     -0.4     9.35
 Chile IPSA                      5,202.05     0.81    25.31
 Chile IGPA                     25,973.23     0.73    25.27
 Argentina MerVal               23,634.73    -0.28    39.70
 Colombia IGBC                  11,148.77    -0.14    10.08
 Venezuela IBC                 397,110.88     2.87  1152.51
 Currencies                      Latest     Daily   YTD pct
                                             pct    change
 Brazil real                       3.1259    -0.35     3.94
 Mexico peso                      17.6860    -0.17    17.29
 Chile peso                         625.3    -0.35     7.26
 Colombia peso                   2,895.92    -0.04     3.65
 Peru sol                           3.249    -0.34     5.08
 Argentina peso (interbank)       16.9700     0.18    -6.45
 Argentina peso (parallel)          17.79     0.39    -5.45
 (Reporting by Bruno Federowski)
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