Thursday, March 16, 4:45 PM EST (Thomson Financial): Latin American stocks
turned mixed on the day, as Brazil moved lower, while Mexico and Argentina
advanced. Mexico surged, as the country was strongly aided by benign U.S.
inflation data. Argentina also received support from some upbeat domestic
economic reports.
Brazil's Bovespa Index dipped 87.35 points, or 0.23%. Mexico's benchmark
Bolsa Index jumped 166.79 points, or 0.88%, while Argentina's Merval Index
surged 17.96 points, or 1.00%.
Brazilian shares moved lower ahead of an options expiry this coming
Monday. Political turmoil resurfaced in Brazil today. A witness testified
before a Senate committee that Finance Minister Antonio Palocci visited a
Brasilia house that has been linked to a kickback scheme.
On the economic front, the National Confederation of Industries, or CNI,
said that industrial capacity fell to 80.4% in January, compared with 82.7% in
the corresponding period a year ago. December's reading was 80.7%. Separately,
minutes from the Brazilian Central Bank's March meeting indicated a continued
gradual decline in the country's Selic base rate.
Supermarket chain CBD said that its nominal same-store sales dipped 1.6%
in February from a year ago, while same-store sales, when adjusted for
inflation, dipped 0.4% in February from a year ago. Gross sales jumped 2.9% on
the year last month to 1.259 billion reais. Net sales rose 3.8% to 1.057
billion reais.
Meanwhile, the Brazilian Steel Institute said that domestic crude steel
production slumped 17.7% in February from a year ago due to stoppages for
maintenance and accidents.
In Mexico, economic news on both sides of the border garnered attention.
U.S. consumer prices were benign in February, reducing inflationary concerns.
Also, the Philly Fed business activity index continued to expand last month.
Domestic industrial production was bolstered by continued strength in the
automotive and construction sectors. Industrial output rose 6% in January from
a year ago, easily beating analyst expectations.
Turning to corporate news stories, homebuilder Consorcio Ara increased its
growth estimates for 2006. The firm sees home sales rising 20% this year, up
from its prior estimate of 12%. That firm's shares rose on the session.
Elsewhere, state-oil firm Pemex said that its proven hydrocarbon reserves
stood at 16.5 billion barrels of crude-oil-equivalent as of January 1, down
from 17.6 billion barrels a year ago.
Argentine issues continued to rally today, as most shares within the
benchmark Merval Index saw gains. Economic reports were also in focus today.
In economic news, the national statistics agency, or Indec, said that
gross domestic product rose 2.1% in the fourth quarter of last year from the
third quarter, while advancing 9.1% year-over-year. Separately, February
manufacturing activity surged 8.6% on the year and 3.1% on the month.
Banks were positive on the session. Banco Marcro Bansud advanced ahead of
its listing in U.S. markets. The firm announced last night that the
preferential subscription for its 75 million new Class B shares will begin
March 22.
-- Linda.Shea@thomson.com; Thomson Financial Corporate Services
This is Thomson Financial Corporate Services Latin American Commentary.
The information herein is believed to be true and accurate, we take no
responsibility for inaccurate information and reserve the right to update our
reports. If you have any questions please e-mail James Sang at
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SOURCE Thomson Financial Corporate Group
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