Friday, March 31, 4:45 PM EST (Thomson Financial): Latin American stocks
were mixed to higher, with Brazilian shares posting modest gains on growing
hopes for a continuation of Brazil's austere fiscal and monetary policies that
have been credited with reviving Latin America's largest economy. Meanwhile,
pleasing U.S. economic data boosted Mexican equities.
Brazil's Bovespa Index rose 285.19 points, or 0.76%. Mexico's benchmark Bolsa
Index climbed 81.66 points, or 0.43%, while Argentina's Merval Index added
6.18 points, or 0.34%.
Brazilian stocks gained ground, as investors grew less concerned that Guido
Mantega's recent appointment as finance minister might lead to a major change
in economic policy. Helping to calm nervous investors, Mantega yesterday said
the government would meet its ambitious fiscal austerity goals for 2006.
Investors were also pleased with yesterday's appointment of market-friendly
economists Bernard Appy and Karlos Kawall, as deputy finance minister and
treasury secretary respectively. "We believe that both names help in signaling
to the markets the continuation of the current economic policy," a major
investment bank wrote in a note to clients.
Separately, President Luiz Inacio Lula da Silva today named nine new ministers
of state to replace officials leaving office to participate in the country's
October elections. Among the key posts undergoing a shuffle are the ministers
of defense, health and the interior.
In corporate news, aircraft maker Embraer said late yesterday that it plans to
launch three new executive jet models, local news services reported.
Mexican issues turned around late in the day, after closely following downbeat
U.S. markets for most of the session. U.S. shares moved lower, despite
economic data released indicating tame inflation and improved consumer
sentiment.
Meanwhile, the Senate approved a new radio and television law that some
critics believe favors existing broadcasters, such as Televisa, because it
will allow them to acquire spectrum for high definition television possibly
without paying for it.
Conglomerate Alfa SA intends to invest US$1.2 billion over the next three
years to expand capacity in its auto parts, petrochemicals and food
operations. The firm jumped higher on the day.
Argentine issues traded similarly to yesterday-modestly lower, amid low
trading volume. In economic news, the Ministry of Labor said the employment
index rose 0.5% in February from January, bringing the index up 9.8% from
February last year.
National power grid operator Cammesa will begin accepting construction bids
next week for an expansion of Argentina's two main gas pipelines. The move
should help curtail gas shortages.
-- Paul.Davee@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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