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EMERGING MARKETS-Brazil stocks extend rally as U.S. markets rise
July 22, 2013 / 3:48 PM / 4 years ago

EMERGING MARKETS-Brazil stocks extend rally as U.S. markets rise

* Petrobras, OGX, Vale lead gains
    * Bovespa due to break 6-month losing streak
    * Brazil Bovespa up 1.18 pct, Mexico IPC gains 0.26 pct

    By Lucas Iberico-Lozada
    SAO PAULO, July 22 (Reuters) - Brazilian stocks extended a
recent rally on Monday, led by oil producers and commodities
exporters as the benchmark Bovespa index continued to track
world markets higher.
    Mexico's IPC index edged higher, while Chile's bourse
 was little changed.
    Last week, Brazil's Bovespa index saw its strongest
weekly gain in 10 months as encouraging corporate earnings in
the United States led the S&P 500 and the Dow Jones
Industrial Average to record highs. 
    The Bovespa jumped 1.25 percent to 48,002.88 on Monday as
investors continued to look toward a potential improvement in
the outlook for Brazilian equities.
    "The market is experiencing a slight recovery," said Pedro
Galdi, an analyst with SLW Corretora in Sao Paulo. "Our stock
market is among the weakest in the world, so a small recovery
can come about in the absence of bad news. Brazil continues to
see some very weak economic indicators, but it's growing for
    Shares of state-run oil company Petroleo Brasileiro SA
, known as Petrobras, were poised to break technical
resistance at 16.10 reais per share as prices jumped 1.4
percent, erasing Friday's losses.
    Iron-ore producer Vale SA saw gains of 0.9
percent as shares of the world's biggest miner looked on track
to post their biggest monthly gain since Dec. 2012.
    Preferred shares of Brazilian lender Banco Bradesco SA
 rose 1.5 percent after the company announced weaker
than expected second-quarter earnings and cut projections for
lending and interest income growth for this year.
    Mexico's IPC index rose 0.26 percent to just under 40,000
points, a level that provided technical support earlier this
    Mining firm Grupo Mexico rose 1.6 percent,
while lender Grupo Financiero Banorte added 0.7
    Chile's IPSA index traded mostly flat, as a 1 percent gain
in regional air carrier Latam Airlines Group helped
offset a 3 percent fall in shares of miner and steel producer
    Latin America's key stock indexes at 1522 GMT:
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,196.01      0.59    -16.34
 Brazil Bovespa               47,959.39      1.18    -21.32
 Mexico IPC                   39,995.08      0.26     -8.49
 Chile IPSA                    3,849.71     -0.07    -10.50
 Chile IGPA                   19,106.11     -0.05     -9.32
 Argentina MerVal              3,447.81       1.1     20.79
 Colombia IGBC                13,434.23     -0.35     -8.71
 Peru IGRA                    15,567.97      0.97    -24.53
 Venezuela IBC               1,249,789.         0    165.10

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