Friday, May 19, 4:45 PM EDT (Thomson Financial): Latin American stocks
were mixed to lower, with Brazilian and Mexican shares retreating amid
continued concerns about rising global inflation and uncertainty over when
the U.S. Federal Reserve will end its tightening cycle.
Brazil's Bovespa Index dropped 74.29 points, or 0.20%. Mexico's
benchmark Bolsa Index fell 34.88 points, or 0.17%, while Argentina's Merval
Index inched up 1.49 points, or 0.09%.
Brazilian stocks dipped, extending recent losses, on continued concerns
about U.S. inflation and interest rates following yesterday's data showing
a bigger-than-expected rise in U.S. consumer prices in April. Investors
fear that recent signs of inflationary pressure will lead the U.S. Federal
Reserve to continue its tightening cycle longer than expected, potentially
diverting investment flows away from emerging markets like Brazil.
In local economic news, Brazil posted a current account surplus in
April of US$241 million, down sharply from US$1.35 billion in March, due in
part to a declining trade surplus and significant overseas corporate profit
remittances.
On the corporate front, steelmaker Arcelor Brasil was in focus after
Mittal Steel raised its offer for Arcelor Brasil parent Arcelor by 34% and
increased the cash element of the bid as well.
Meanwhile, brewing giant Companhia de Bebidas das Americas (AmBev)
posted a first-quarter net profit that more than quadrupled to 655.9
million reals from a year earlier amid higher revenue.
Elsewhere, Mexican shares slumped, as investors continued to fret over
the outlook for U.S. inflation and interest rates. In corporate news, the A
shares of retailer Grupo Famsa SA debuted on the Mexican Stock Exchange
today. The shares rose 1.9% to 26.50 pesos after the initial public
offering priced earlier in the day at 26.00 pesos. Some 2.56 billion pesos
worth of shares were sold through the IPO and secondary offering. Famsa
expects to receive about 1.51 billion pesos in net proceeds from its
initial listing.
Argentine issues were little changed amid a dearth of local market news.
-- 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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