• Categories
  • Archives

Markets: Another Red Day for Brazil

Brazilian and Latin America receipts posted modest declines, as strength in U.S. markets was unable to spur more interest in emerging markets. A smaller-than-expected U.S. trade deficit and tumbling oil prices helped boost U.S. stocks.

Meanwhile, indications of higher inflation in Brazil dampened market sentiment. Mexican issues also moved lower, while Argentine shares rebounded following a recent string of losses.


Brazil’s benchmark Bovespa Index ebbed 64.05 points, or 0.26%, while Mexico’s benchmark Bolsa Index slipped 32.59 points, or 0.26%. Argentina’s Merval Index recovered 19.12 points, or 1.38%.


The U.S. trade deficit narrowed to US$ 54.99 billion in March from a revised US$ 60.57 billion deficit in February. Analysts were looking for a much wider deficit of US$ 61.50 billion. During the month, imports fell despite a big jump in oil prices and exports rose to a record level. The deficit with China also narrowed.


Brazilian issues again slid lower, amid a higher-than-expected domestic inflation figure that could signal further rate tightening in the country.


Brazil’s IPCA Broad Consumer Price Index advanced 0.87% in April, up from 0.61% in March, according to statistics institute IBGE. The news boosted the 12-month IPCA rate for the year ended in April to 8.07% from 7.54% at March’s end.


The IBGE cited administered prices in urban transportation and food as part of the reason for April’s higher reading. The next central bank meeting for reviewing interest rate levels is set for May 17 and 18.


Amid telecom reports, mobile phone company Telemig Celular posted a lower-than-expected rise in its first-quarter profits to 32.77 million reais from 32.74 million reais in the corresponding period a year ago.


Net revenues arrived at 262.8 million reais, down 8.1% from last year’s 288.9 million reais. Also, EBITDA slipped to 97.2 million reais from 134.9 million reais.


Also, fixed line phone company Telesp said that a rise in prices and better broadband services revenues boosted its first-quarter profit by 17% to 489.9 million reais from a year ago.


The results were in line with analyst expectations. EBITDA advanced more than 8% to 1.53 billion reais, while the EBITDA margin climbed to 45.2% of net revenues from 43.3% a year ago.


Elsewhere, flat-steel maker Usiminas said that continued strength in demand and prices for steel helped lift its first-quarter net profit to 1 billion reais from 358.4 million reais in the comparable period last year.


Sales increased to 3.46 billion reais from 2.36 billion reais a year ago, while EBITDA rose to 1.72 billion reais from 921.1 billion reais.


On the research front, a major investment bank upgraded steel firm CSN to “peer perform” from “underperform,” as the company is “more defensive” compared to most of its global peers.


Mexican shares moved lower in quiet trading. Fallout from Televisa’s break with Univision yesterday continued to pressure the firm. Televisa’s chairman and executive vice president both resigned from Univision’s board. Televisa is also suing the firm for unpaid royalties.


Argentine issues rebounded from a recent bout of weakness. In corporate reports, Telecom Argentina said in a conference call that it expects operating profit margins to continue falling this year due to high operating costs and steep competition in the cellular industry.


Last night, the firm posted a net profit of 279 million pesos in the first quarter, up from 124 million pesos in the corresponding period one year before.


Thomson Financial Corporate Group
www.thomsonfinancial.com


PRNewswire

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil Cuts in Half Number of Extremely Poor

Seven years before the deadline for the Millennium Development Goals (MDG), Brazil is showing ...

A Trap for Blacks

Brazil now has quotas for blacks and a law requiring the teaching  of Afro-Brazilian ...

Brazilian Sorcerer Paulo Coelho Gets Hero Welcome in Egypt

A crowd got together at the Al Sakia El-Sawi Cultural Center, located by the ...

For Lula’s Advisor Left in Brazil Is Not Disunited as in Chile

Brazilian Marco Aurélio Garcia, president Luiz Inácio Lula da Silva’s main advisor in international ...

Brazilian industry

Who Is Really Afraid of the FTAA? Brazil’s Big Business

Although every Latin American government pays lip service to integration, taking the concrete steps ...

Lula faces Alcmin in TV presidential debate in Brazil

Brazilian Elections: Alckmin Hits Lula But Lands No Killer Blow

It was good to see President Luiz Inácio Lula da Silva facing some tough ...

Brazilian Minister in London Seeks Explanation for Death of Brazilian

Brazil’s Minister of Foreign Relations, Celso Amorim, will have a meeting today with England’s ...

Venezuela in Protest Against US Leaves CAN to Join Brazil in Mercosur

The Andean Nations Community (CAN) secretariat received last weekend Venezuela’s official relinquishment from the ...

Brazil Ends Tariff on Imported Ethanol Drawing Applause from Sugarcane Industry

Reacting to the Brazilian government’s announcement that it has unilaterally eliminated its tariff on ...