Monday, July 10, 2006, 4:45 PM EST (Thomson Financial): Latin American
issues endured a mixed session, with Brazil inching ahead, while Mexico
receded. Investors are awaiting meaningful data from earnings season, which
unofficially kicked-off today with U.S.-based Alcoa's financial release.
Closer to home, Walmex posted results.
Brazil's Bovespa Index rose 38.66 points, or 0.11%. Mexico's benchmark
Bolsa receded 129.45 points, or 0.65%, while Argentina's Merval Index
slipped 0.98 points, or 0.06%.
Brazilian issues inched forward today alongside light trading volume.
In local economic reports, a central bank survey revealed that economists
expect the IPCA consumer price index to fall to 3.81% this year from a
prior expectation for 3.98%.
Elsewhere, the Trade and Development Ministry said that the country's
foreign trade surplus reached US$1.693 billion in the July 1 to 9 period,
bringing the year-to-date figure to US$21.226 billion. In the year-earlier
period, the trade surplus stood at US$20.034 billion.
On the research front, a major investment bank reduced its price
targets for American Depositary Receipts for telephone firms Telemar and
Brasil Telecom. The news follows the firms' recent rollback in rates.
Within the airline group, Varig's prospects dimmed on a report from
Deloitte, the court-appointed restructuring administrators, that said
liquidation is the preferable option for creditors rather than accepting a
US$500 million offer from investment group Volo do Brasil.
Mexican shares traded lower, as investors continued to ponder the
outcome of the presidential election. Although Felipe Calderon won the
election, rival Andres Manuel Lopez Obrador is demanding a complete
recount, and the Federal Electoral Tribunal has until the end of next month
to access allegations of fraud. By September 6 the tribunal will need to
issue its final ruling on the election by September 6.
In earnings headlines, Wal-Mart de Mexico posted a second quarter net
profit of 2.67 billion pesos, compared to 2.01 billion pesos a year ago.
Sales jumped 17% to 45.07 billion pesos, while operating profit surged 32%
to 3.45 billion pesos. Ebitda, meanwhile, climbed 24% to 4.24 billion
pesos.
Argentine issues were little changed on the day, amid mixed trading
elsewhere in Latin America. Investors are waiting for earnings season to
get underway.
-- Linda.Shea@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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