Wednesday, June 14, 2006, 4:45 PM EST (Thomson Financial): Latin
American shares were higher today, ending a gloomy string of sell offs
prompted by ongoing concerns about the U.S. interest-rate-hiking cycle and
the prospects for inflation. Meanwhile, U.S. inflation data showed an
increase in consumer prices.
Brazil's Bovespa Index rose 93.85 points, or 0.29%. Mexico' benchmark
Bolsa Index rebounded 148.95 points, or 0.89%, while Argentina's Merval
Index was up 12.4 points, or 0.83%.
Brazilian shares managed to track the U.S. into the black today, with
state oil company Petrobras rising on international oil prices. Issues
managed to move back into the black, after shares dipped earlier on
cautionary comments from U.S. Federal Reserve officials.
Shares in Brazilian online retailer Submarino SA soared, after the
company announced its intention to buy back some of its own shares.
Elsewhere, Mexican shares also rose, ending a seven-session losing
streak sparked by the recent flight from emerging-market assets continued.
There was some concern earlier in the session, following a U.S. economic
report that showed consumer inflation rose on surging gasoline prices. The
consumer price index posted a 0.4% increase in May after an even bigger
0.6% rise in April. Excluding energy and food, core inflation rose by a
larger-than-expected 0.3%.
In corporate news, Mexican conglomerate Alfa SA said a group of
shareholders sold 34.0 million shares at a price of 48.50 pesos a share. In
a filing with the Mexican stock exchange, Alfa said it paid 844.7 million
pesos for 17.4 million of the shares, or 3.0% of its outstanding shares.
The total sale accounted for 5.9% of outstanding shares. Alfa used money
from its share buyback fund to purchase the shares at the market price; its
shares were higher at the close.
On the research front, a major investment bank upgraded retailer Walmex
to "buy" from "neutral," as it sees recent weakness in the firm's shares as
an opportunity to buy. Walmex jumped in response.
Elsewhere, Argentine stocks finally broke out of a seven-session losing
streak that had pulled the benchmark Merval Index to a six-month low. The
Index ended higher.
Air carrier Aerolineas Argentinas is reportedly negotiating to give the
government a 5% stake in the firm in exchange for a fare increase and
subsidies for unprofitable routes, according to Spanish news agency Europa
Press.
-- Michael.O'Brien@contractor.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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