December 11, 2012 / 12:00 AM / 5 years ago

EMERGING MARKETS-Mexico stocks hit record level on rosy outlook

* Mexico's IPC closes at record high
    * Brazil Bovespa hits highest level in over a month
    * Chile's IPSA flat, down 1 percent on year

    By Danielle Assalve and Jean Luis Arce
    SAO PAULO/MEXICO CITY, Dec 10 (Reuters) - Latin American
stocks rose on Monday, with Mexico's IPC stock index 
closing at a record high as positive expectations about Mexican
fiscal policy and economic growth drove share prices to their
sixth consecutive day of gains. 
    Mexican stocks pushed past the 43,000 barrier for the first
time, closing at 43,134.51 while Brazil's benchmark Bovespa
stock index rose 1.3 percent to its highest level in
more than a month.  
    Last week, Mexico's new finance minister, Luis Videgaray,
presented the 2013 budget, in which he envisaged 3.5 percent
growth and a balanced budget. 
    In Mexico, balanced budgets are required by law - excluding
debt at state oil firm Pemex. Factoring in Pemex investment, a
deficit of 2 percent of gross domestic product is forecast for
    "Our market has been buoyed by these positive economic
expectations ... and the possibility of reforms next year," said
Carlos Gonzalez, head of strategy at Monex financial group in
Mexico City. "It also helps that the budget was balanced." 
    Telecommunications giant America Movil, owned by
Mexican billionaire Carlos Slim, drove gains in the IPC, adding
1.82 percent, while broadcaster Grupo Televisa lost
0.59 percent. 
    Brazil's Bovespa jumped on news that industrial output and
retail sales in China rose in November at the fastest pace in
eight months, despite a sharp slowdown in exports.
    China is Brazil's biggest trading partner and a key
purchaser of Latin American commodities exports such as iron
ore, soy, copper and petroleum. 
    "China has shown a sequence of positive data in recent
months, indicating that its growth slowdown is behind us," said
Felipe Rocha, an analyst at the Omar Camargo brokerage in
    Preferred shares of iron-ore miner Vale rose 1.38
percent, while oil producer OGX, owned by billionaire
Eike Batista, saw its value jump 8.76 percent. 
    Brazil's Bovespa is up just 4.4 percent in 2012, compared
with a gain of more than 16 percent in Mexico's IPC index 
and a nearly 13 percent rise in the U.S. S&P 500 index. 
    Investors have been concerned over heavy government
intervention in Brazil's private sector and lackluster economic
growth, while jitters over fiscal negotiations in the United
States have sapped foreign demand for local shares.
    Chile's IPSA index was flat. The index has lost
about 1 percent this year. 
    Latin America's key stock indexes at 2305 GMT:
                                                    % change
 MSCI LatAm                          3,695.57           0.97
 Brazil Bovespa                     59,248.23            1.3
 Mexico IPC                         43,134.51           0.79
 Chile IPSA                          4,135.71          -0.03
 Chile IGPA                         20,318.72          -0.02
 Argentina MerVal                    2,520.28           1.62
 Colombia IGBC                      14,500.30           0.51
 Peru IGRA                          19,908.02          -0.15
 Venezuela IBC                     419,926.88          -1.14
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