Wednesday, April 26, 4:45 PM EDT (Thomson Financial): Latin American
stocks were mixed to higher, with Brazilian shares surging on further signs
of strength in Latin America's biggest economy, while continued earnings
optimism boosted Mexican issues. Profit taking dragged Argentine stocks
lower.
Brazil's Bovespa Index leapt 671.99 points, or 1.69%, while Mexico's
benchmark Bolsa Index rose 206.30 points, or 1.01%, and Argentina's Merval
Index fell 19.16 points, or 0.99%.
Brazilian stocks advanced to a record closing high, as investors
reacted to positive primary surplus and inflation data. The central bank
reported that Brazil logged a primary surplus of 86.809 billion reais in
the 12 months through March, equivalent to 4.39% of gross domestic product.
That was above a government target of 4.25% of GDP, helping to ease
concerns that the government had boosted spending ahead of the October
presidential elections.
Meanwhile, inflation as measured by the IPCA-15 index slowed to 0.17%
in the March 15 to April 11 period, down from 0.37% in the February 11 to
March 14 period, the IBGE reported. Also, the Fipe research foundation said
the Sao Paulo consumer price index fell 0.06% in the four weeks ended April
23, matching the decline seen in the four weeks ended April 15.
In corporate news, budget airline Gol Linhas Aereas Inteligentes said
it received governmental authorization to operate 21 flights a week to the
Chilean capital, Santiago. Yesterday, the company reported robust first-
quarter earnings.
Oil giant Petrobras said that its stock will be listed on the Buenos
Aires Stock Exchange starting Thursday. "We expect Petrobras to become the
most traded share in Buenos Aires within six months," the company said. No
new Petrobras shares will not be issued in Argentina.
Electric energy utility Tractebel Energia SA reported a first quarter
net profit of 343.8 million reais, up sharply from 172.2 million reais a
year earlier.
Mexican stocks posted solid gains, hitting a sixth consecutive record
high, amid continued optimism about the economy and first-quarter earnings.
Among today's quarterly reports, BBVA Bancomer said its first-quarter net
profit jumped 84% to 4.90 billion pesos from 2.67 billion pesos a year
earlier, helped strong growth in mortgage and consumer loans.
Meanwhile, airport operator Grupo Aeroportuario del Sureste SA (Asur)
said its first-quarter net profit tumbled 42% from a year earlier due to
lower passenger traffic at its biggest airport in Cancun. Revenue fell 17%.
Also reporting, home construction company Sare Holdings said its first-
quarter net profit rose to 79.7 million pesos from 52.0 million pesos a
year ago amid a jump in home sales.
On the economic front, the Bank of Mexico estimated that first-quarter
gross domestic product rose 5.2%, and predicted that the economy will grow
between 3.5% and 4% for the full year. That was up from the bank's previous
full-year growth forecast of 3.2% to 3.7%
Argentine issues dropped, as investors took profit in some of the
Merval's largest stocks, such as Tenaris and Petrobras Energia
Participaciones, offsetting gains in banking and steel shares. Petrobras
Energia was down ahead of its parent company's listing tomorrow on the
local stock exchange.
Giving steelmakers a boost, the national statistics agency said its
construction index surged 16.5% in March from a year earlier. However, the
index dipped a seasonally adjusted 1.1% in March from February.
-- 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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