June 28, 2013 / 11:06 PM / 5 years ago

EMERGING MARKETS-Mexico stocks see biggest weekly rise in nearly 4 years

* Bovespa posts losses for sixth straight month
    * Mexican, Chilean markets continue rebound
    * Brazil Bovespa falls 0.32 pct, Mexico IPC rises 2.45 pct

    By Lucas Iberico-Lozada and Luc Cohen
    SAO PAULO / MEXICO CITY June 28 (Reuters) - Mexican stocks
soared on Friday, topping off their strongest five-day stretch
of growth in nearly four years as they hit a more than
three-week high.
    Mexican and Chilean stocks rallied for a fourth straight
session, while Brazil's Bovespa slumped and notched its sixth
consecutive month of losses, as speculation continued about when
the U.S. Federal Reserve will begin to taper stimulus.
     Fed Chairman Ben Bernanke's announcement last week that the
bank could soon taper its bond-buying program had sent Latin
American markets tumbling. The program had supported investor
appetite for risky assets.
     But markets, including Mexico's IPC Index have
reversed losses, as a string of lukewarm economic data out of
the United State cooled investor fears of a quick tightening. 
    On Friday, the Institute for Supply Management-Chicago said
its index of U.S. Midwest business activity fell in June,
missing expectations. 
    Still, a Fed official warned on Friday that September could
be an opportune time for the U.S. central bank to consider
scaling back its assets purchases. 
    Mexico's IPC index jumped 2.45 percent, its highest
single-day expansion since January 2012, to close at 40,623
    Shares of America Movil, the telecommunications
company controlled by billionaire Carlos Slim, rose 3.29
percent, contributing the most to the index's gains.
    Despite the rally, Goldman Sachs lowered its growth
projections for both Mexico and Brazil on Friday, citing the
possibility of near-term Fed tapering.  
    In Brazil, weak projections for growth along with a strong
dollar contributed to a dismal quarter, a trend that continued
Friday as investors sold off shares of commodities exporters and
homebuilders to take advantage of recent gains. 
    The benchmark Bovespa stock index fell 0.32 percent
to close at 47,457.13, dragged down by a 5.96 percent loss in
oil and gas entity OGX Petroleo. 
    "Movements in the Bovespa are pretty delicate right now, and
a slight fall at the end of the quarter was not unexpected,"
said Luis Gustavo Pereira, a strategist at brokerage firm Futura
Corretora in Sao Paulo.
    Chile's IPSA index rose 1.71 percent to 4,029.67 as
shares of regional energy group Enersis added 3.27
    Latin America's key stock indexes at 2158 GMT:
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,187.22      0.91    -16.08
 Brazil Bovespa               47,457.13     -0.32    -22.14
 Mexico IPC                   40,623.30      2.45     -7.05
 Chile IPSA                    4,029.67      1.71     -6.32
 Chile IGPA                   19,861.10      1.21     -5.74
 Argentina MerVal              2,976.27      1.19      4.27
 Colombia IGBC                12,828.49      2.27      1.29
 Peru IGRA                    15,549.55      2.52    -24.62
 Venezuela IBC                     0.00         0   -100.00
0 : 0
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