Tuesday, May 16, 4:45 PM EDT (Thomson Financial): Latin American stocks
were mixed to higher, with Brazilian and Mexican shares climbing on
reassuring U.S. inflation data. On the down side, Argentine issues extended
recent losses.
Brazil's Bovespa Index added 144.99 points, or 0.37%. Mexico's
benchmark Bolsa Index rose 128.93 points, or 0.62%, while Argentina's
Merval Index lost 7.75 points, or 0.44%.
Brazilian stocks edged up, as tame U.S. producer price data helped to
ease worries about rising U.S. inflation and interest rates. The core
producer price index rose just 0.1% in April, suggesting that surging
energy costs have yet to feed into generalized inflation.
In local corporate news, mining giant Vale do Rio Doce announced late
yesterday a 19% price hike for iron ore sold to German steel maker
ThyssenKrupp. Analysts had expected a slightly higher price increase,
leading some to reassess their 2006 and 2007 earnings forecasts for the
company.
Sao Paulo state waterworks utility Companhia de Saneamento Basico do
Estado de Sao Paulo SA (Sabesp) reported a first-quarter net profit of
327.9 million reais, up sharply from 151.4 million reais a year earlier, as
results were helped by an increase in tariffs.
Also reporting, electric power utility Companhia Paranaense de Energia
SA (Copel) late yesterday said its first-quarter net profit surged to 171
million reais from the 78 million reais a year ago on a 14% rise in
revenue.
Elsewhere, Mexican shares gained ground, snapping a four-session losing
streak, as investors were cheered by today's benign U.S. inflation data and
recent signs of strength in the Mexican economy. Data released yesterday
showed a 9.7% rise in Mexico's industrial production in March.
Argentine issues fell, extending recent losses, in a quiet news day for
the market. Among the headlines, flagship carrier Aerolineas Argentinas and
its pilots and mechanics unions late yesterday agreed to a 19% pay hike,
ending a long-running labor dispute. As part of the deal, workers will not
resume wage negotiations until January of next year and will maintain a
truce until March 2007.
-- 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
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SOURCE Thomson Financial Corporate Group
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