September 27, 2019 / 8:31 PM / 17 days ago

EMERGING MARKETS-LATAM Airlines soars, Mexican peso logs more than 1% weekly loss

 (New throughout, adds analyst comment, updates prices)
    By Susan Mathew
    Sept 27 (Reuters) - Airlines headlined stock moves in Latin
America on Friday, after Delta Air Lines' purchase of a
stake in Chile's LATAM Airlines sent its shares soaring
30%, while Brazilian counterpart Gol slid.
    LATAM's surge saw Chile stocks jump up to 2.5%
during the session and hit their highest in almost five months,
outperforming regional peers.  
    Delta bought 20% of LATAM for $1.9 billion in a major new
airline partnership, but also sold its stake in Brazil's largest
airline Gol, which sent shares 6.5% lower followed closely by 
Gol's loyalty program, Smiles Fidelidade, which slid
5.3%.
    Brazil main Bovespa index lost 0.2%, with gains in
toll road operator Ecorodovias' on winning an auction
helping cap losses.
    Brazil stocks were set to extend gains to a fifth week.  
    Analysts at TS Lombard say the lower interest rate
environment in Brazil will benefit equities into 2020.

    "Both individuals and companies will continue to benefit
from falling borrowing costs going into 2020. We expect the
gradual recovery of the credit markets will continue through
next year as the job market begins to show more convincing signs
of improvement."
    Elsewhere in the region, Colombian slipped 0.7%,
while those in Mexican shares extended losses to a fifth
day, tracking Wall Street's fall.
    Conglomerate Femsa was the biggest decliner on
Mexico's main index after a Scotiabank downgrade to 'Neutral'.

    On the week, Mexico's main index lost around 1.6% to break a
five-week winning streak. 
    Among currencies, Brazil's real firmed, while most other
Latam currencies weakened against a steady dollar.
    The real rose 0.4% on Friday, with sentiment getting
a lift after the country's Treasury Secretary Mansueto Almeida
said the government's primary deficit this year will likely be
15-20 billion reais below the official target of 139 billion
reais.
    On the week, the currency made slight losses in its 10th
weekly loss in 11.
    Mexico's peso lost 0.1% on the day and more than 1%
over the week which was made volatile by U.S. President's Donald
Trumps' warnings that an impeachment move launched against him
may derail a North American trade deal between Mexico, Canada
and the United States. 
    
    Key Latin American stock indexes and currencies at 1958 GMT:
    Stock indexes             Latest    Daily %
                                         change
 MSCI Emerging Markets         1000.46     -0.88
                                        
 MSCI LatAm                    2682.58     -0.23
                                        
 Brazil Bovespa              105105.12      -0.2
                                        
 Mexico IPC                   42871.56     -0.26
                                        
 Chile IPSA                    5099.64      1.46
                                        
 Argentina MerVal             28735.49     2.015
                                        
 Colombia IGBC                12941.63     -0.71
                                        
                                                
       Currencies             Latest    Daily %
                                         change
 Brazil real                    4.1553      0.14
                                        
 Mexico peso                   19.6976     -0.17
                                        
 Chile peso                     725.85     -0.01
                                        
 Colombia peso                 3456.55     -0.37
 Peru sol                        3.381      0.03
                                        
 Argentina peso                57.3200     -0.17
 (interbank)                            
                                        
 
 (Reporting by Susan Mathew in Bengaluru
Editing by Sonya Hepinstall)
  
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