Tuesday, July 11, 2006, 4:45 PM EST (Thomson Financial): Latin American
shares witnessed another mixed session, as Mexican shares continued their
fall. The broader market managed some gains after an initial drop,
following commuter train explosions in Mumbai, in which terrorism is
suspected.
Brazil's Bovespa Index leapt 412.92 points, or 1.14%. Mexico's
benchmark Bolsa fell 129.94 points, or 0.66%, while Argentina's Merval
Index jumped 17.07 points, or 1.00%.
Brazilian shares posted strong gains on the day, particularly due to
some positive economic indications. Finance Minister Guido Mantega told
journalists that the economy could grow by 4% to 4.5% in 2006, above
analyst expectations for 3.6% growth as calculated in a Central Bank of
Brazil survey.
In corporate reports, state-run oil firm Petrobras said that a
consortium led by the firm found light oil in an ultra-deep exploration
will in Brazil's Santos Basin. Petrobras is the lead operator of the well
with a 65% stake. Separately, Petroquisa, the petrochemicals unit of
Petrobras, will enter a US $320 million joint venture to produce raw
materials for polyester used in the textile industry.
Mexican issues once again moved lower on profit-taking, following
robust gains tallied last week on the presidential win of conservative
Felipe Calderon. Investors are beginning to turn their attention from the
tight race, which still leaves the door open for rival Andres Manuel Lopez
Obrador, to earnings season.
Homebuilder Geo expects to post second-quarter sales between 2.78
billion pesos and 2.8 billion pesos with an operating margin between 17%
and 17.2%. The firm is set to release final results on July 24.
Argentina bounced higher today, following lackluster trading yesterday.
Energy Secretary Daniel Cameron announced plans to raise the pump price for
foreign registered vehicles in border areas on August 10.
-- 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
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
Financial, please visit our web site at http://www.thomsonfinancial.com.
SOURCE Thomson Financial Corporate Group
back to top
