Monday, May 8, 4:45 PM EDT (Thomson Financial): Latin American stocks
were mixed to higher, with Brazilian and Mexican shares gaining on hopes
the U.S. Federal Reserve will raise interest rates on Wednesday but then
pause its tightening cycle at subsequent meetings. Argentine issues fell
amid mixed earnings.
Brazil's Bovespa Index rose 98.22 points, or 0.24%. Mexico's benchmark
Bolsa Index jumped 371.22 points, or 1.75%, while Argentina's Merval Index
dropped 22.29 points, or 1.18%.
Brazilian shares edged up amid optimism about local corporate earnings.
A raft of companies are scheduled to report later this week including Banco
Itau, Unibanco, Vale do Rio Doce and Eletropaulo. Helping to buoy investor
sentiment, Brazil's largest private bank, Banco Bradesco, said today that
its first-quarter earnings rose 27% to 1.530 billion reals.
Investors were also looking ahead to the U.S. Federal Reserve's
interest- rate decision on Wednesday. Investors will pick apart the Fed's
policy statement in search of any indication of whether a pause in the
current U.S. monetary tightening cycle is likely at future meetings.
In other developments, a major investment bank cut its price target on
Vivo to US$6.00 from US$6.50, citing the company's "disappointing 1Q
results."
Elsewhere, Mexican stocks surged to a record high, resuming a recent
rally following a bout of profit taking on Friday. Shares were supported in
part by optimism about the outlook for U.S. interest rates.
Argentine issues dipped amid mixed earnings news from local companies.
Shares of Siderer dropped after the steelmaker reported late Friday that
its first-quarter net profit fell to 324 million pesos from 425 million
pesos a year earlier, due to higher operating costs.
Bucking the downtrend, however, shares of Petrobras Energia
Participaciones rose after the oil and gas firm posted a first-quarter net
profit of 365 million pesos, up sharply from 149 million pesos a year ago.
-- 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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