Monday, March 20, 4:45 PM EST (Thomson Financial): Latin American stocks
moved collectively higher on the day, with Mexican shares again reaching fresh
highs. Investors in both the U.S. and Latin America will be eyeing a speech by
Fed chairman Ben Bernanke later this evening.
Brazil's Bovespa Index jumped 154.36 points, or 0.41%. Mexico's benchmark
Bolsa Index surged 235.32 points, or 1.22%, while Argentina's Merval Index
edged up 6.32 points, or 0.35%.
Brazilian issues posted solid gains, as investors were relieved that no
further allegations surfaced against Finance Minister Antonio Palocci over the
weekend. Also aiding local shares was a sharp drop in crude oil prices. Brazil
is a net importer of oil.
On the economic front, the private Getulio Vargas Foundation said that the
General Price Index, or IGP-M, fell 0.10% in the 10 days through March 20,
compared with a slip of 0.01% during the same period in February. The most
recent result showed a sharper-than-expected drop in prices.
Separately, the Fipe research foundation said that its consumer price
index rose 0.26% in the four weeks ended March 15, versus a 0.16% jump in the
four weeks ended March 7.
In corporate headlines, Banco Bradesco SA said it will buy the local
operations of U.S.-based American Express for US$490 million. Brazil's largest
private bank said it will acquire operations run by American Express in
Brazil, including credit card portfolios and consumer credit unions.
A major investment bank initiated coverage on investment fund Bradespar at
"outperform." The broker cited the firm's "transparent valuation with low
reinvestment risk" as one factor for its rating.
Mexican shares moved higher today, with the IPC Index reaching another
fresh record high. In the U.S., investors are awaiting an evening speech by
Federal Reserve Chairman Ben Bernanke, in which further insight into interest
rates may be given.
Turning to the economy, the National Statistics Institute reported that
unemployment fell to 3.6% in February from 3.8% a year ago. On a seasonally-
adjusted basis, unemployment rose 0.14% in February from January.
Elsewhere, an influential investment bank raised its rating on steel firm
Industrias CH SA to "buy" from "neutral," as it expects improved performance
at its U.S. unit PAV Republic.
In Argentina, shares moved modestly higher, in line with broader regional
gains. Local shares were bolstered by the banking sector. Meanwhile, falling
crude oil prices weighed on select related stocks.
-- 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
james.sang@tfn.com or call 646.822.6233. For more information about Thomson
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SOURCE Thomson Financial Corporate Group
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