Thursday, April 13, 4:45 PM EDT (Thomson Financial): Brazilian stocks
sank into the red today, as investors reacted to a continued drop in U.S.
Treasuries prices that pushed the yield on the 10-year note above 5%.
Meanwhile, markets in Mexico and Argentina were closed. All Latin American
markets, including Brazil, will be closed tomorrow in observance of Good
Friday.
Brazil's Bovespa Index fell 345.28 points, or 0.90%.
Weighing on Brazilian equities, long-term U.S. Treasuries prices
extended recent losses, pushing the yield on the 10-year note above 5% for
the first time since June 2002. Prices were driven lower by heightened
expectations for continued interest-rate hikes by the Federal Reserve after
data released today showed a bigger rise in U.S. retail sales in March.
Higher U.S. rates could, in turn, divert funds away from emerging markets
like Brazil.
In corporate news, airline TAM was in focus after the air carrier
raised 1.559 billion Reais yesterday from its global offering of shares on
the Brazilian Stock Exchange. The money raised exceeded the 1.495 billion
Reais initially announced, due to strong demand.
Meanwhile, paper and pulp producer Votorantim posted a first-quarter
net profit of 159 million Reais, up 10% from 145 million Reais a year
earlier. However, net operating revenue fell 2%.
In the same sector, a major investment bank raised its price target for
paper and pulp producer Aracruz to US $52 from US $43, citing "a stronger
than expected scenario given better than expected momentum in pricing."
Elsewhere, online retailer Submarino SA said it raised 812.8 million
Reais from an offering of shares on Sao Paulo's Bovespa Stock Exchange.
Technology group Totvs SA said it purchased local rival RM Sistemas SA
for 206 million Reais. The acquisition came a month after Totvs raised 460
million Reais from its initial public offering of shares on the Bovespa.
Supermarket chain Companhia Brasileira de Distribuicao (CBD) said its
nominal same-store sales dropped 11.5% in March from a year earlier.
-- Paul.Davee@thomson.com; Thomson Financial Corporate Services
This is Thomson Financial Corporate Services Latin American Commentary.
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responsibility for inaccurate information and reserve the right to update
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SOURCE Thomson Financial Corporate Group
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