Wednesday, May 3, 4:45 PM EDT (Thomson Financial): Latin American
stocks were mixed, with Brazilian and Argentine shares falling on profit
taking, while upbeat local earnings news lifted Mexican issues.
Brazil's Bovespa Index shed 96.82 points, or 0.24%. Mexico's benchmark
Bolsa Index rose 79.29 points, or 0.38%, while Argentina's Merval Index
tumbled 54.21 points, or 2.84%.
Brazilian shares dipped, as investors cashed in some of yesterday's
robust gains while continuing to assess the impact of Bolivia's decision
Monday to nationalize natural gas supplies. Investors have largely shrugged
off the news amid Bolivian assurances that gas supplies to Brazil would be
maintained. Brazil receives more than 50% of its natural gas supplies from
Bolivia.
Petrobras said today that while it recognizes Bolivia's "sovereign
right" to nationalize gas reserves, it believes that "conditions exist for
Brazil to negotiate with Bolivia (over natural gas and other energy
issues)." "We believe that existing contracts protect the interests of
Petrobras," the company said.
In other news, long steel maker Gerdau said its first-quarter net
profit rose 2.7% from a year earlier to 832.5 million reais, on rising
domestic demand resulting from improved civil construction activity.
Elsewhere, Mexican shares climbed to their third straight record high,
helped by upbeat earnings news from America Movil. The wireless carrier
said its first-quarter net profit more than doubled to 9.95 billion pesos
from 4.65 billion pesos a year earlier, on strong subscriber growth.
Revenue grew 26% to 50.72 billion pesos. Analysts had expected a net profit
of 5.74 billion pesos on revenue of 52.2 billion pesos. The company also
raised its 2006 new subscriber target.
Meanwhile, copper miner Grupo Mexico said its first-quarter net profit
rose 32% to US$331.0 million, as sales rose 7% to $1.33 billion, on higher
metal prices. In addition, the company cautioned that it is considering the
closure of its third-largest zinc mine, where strikers have been blocking
access for the past two months.
In research, a major investment bank downgraded beverage company Femsa
to "equalweight" from "overweight," citing valuation.
On the political front, a poll released by Reforma newspaper showed
ruling-party candidate Felipe Calderon with his first major lead over
leftist rival Andres Manuel Lopez Obrador in Mexico's presidential race.
Argentine issues sank, as investors took profits after Merval
heavyweight, Tenaris, released robust first-quarter earnings figures, as
expected.
-- 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
Financial, please visit our web site at http://www.thomsonfinancial.com.
SOURCE Thomson Financial Corporate Group
back to top
