Brazil Forgets Politics and Keeps Its Stock Winning Streak

Latin American markets continued their collective upward advance for a second-straight session. Brazil powered higher, as investors chose to concentrate on the country’s corporate developments, rather than the ongoing political scandal.

Meanwhile, Mexican shares continue to benefit from a largely positive earnings season, while Argentine stocks are moving higher ahead of the country’s financial releases. U.S. shares were firmly higher today, on upbeat economic reports and robust July sales data from the auto sector.


Brazil’s benchmark Bovespa Index surged 490.47 points, or 1.87%, while Mexico’s benchmark Bolsa Index jumped 95.16 points, or 0.65%. Argentina’s Merval Index leapt 12.80 points, or 0.84%.


Brazilian shares continued their winning streak. In the latest testimony regarding the country’s alleged cash-for-votes scheme, former chief of staff José Dirceu denied any involvement in the scandal.


Meanwhile, local newspaper Folha de S. Paulo reported that at least 18 members of Congress who are allegedly linked to the bribery scheme may resign from the Chamber of Deputies. Yesterday, Congressman Waldemar Costa Neto became the first to resign.


The financial sector was active today. Banco Itaú, Brazil’s second-largest private bank, posted a jump in its second-quarter net profit to 1.33 billion reais from 949 million reais a year ago, primarily due to the expansion of its credit portfolios. The firm’s total assets grew to 144.55 billion reais from 122.76 billion reais a year earlier.


Meanwhile, Banco Bradesco, the country’s largest private bank, signed a memorandum of understanding with retailer Lojas Colombo to provide its customers with consumer credit services. Bradesco signed a similar agreement with Lojas Leader last week.


In other financial releases, no-frills airline Gol said that higher fuel costs and strong price pressures overshadowed the firm’s surge in revenue during the second quarter.


The firm’s quarterly net profit was nearly flat at 73.4 million reais from 73.2 million reais a year ago, while net revenue leapt to 562.2 million reais from 385.5 million reais.


Gol’s earnings before interest, tax, depreciation, amortization and aircraft rental costs edged up 6% to 155.7 million reais from 146.9 million reais.


Mexican shares added to yesterday’s strong performance in the wake of a mostly positive earnings season in the country. U.S. markets also ended positively, adding to upbeat domestic investor sentiment, as the U.S. is a key trading partner of Mexico.


State-run oil firm Pemex said that its trade surplus widened by 22% to US$10.19 billion in the first half of the year, bolstered by strong crude oil prices.


Turning to research news, a major investment bank initiated coverage on copper miner Grupo Mexico with a “buy” rating. The bank commented that Grupo Mexico’s shares are trading at a discount to their peers. Grupo Mexico shares advanced on the news.


Argentina’s Merval stock index reached a four-month high today, as investor optimism abounds ahead of the country’s second-quarter earnings season. Trading volume has also picked up in recent days.


Thomson Financial Corporate Group – www.thomsonfinancial.com

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

Truck Drivers Drafted Into Brazil’s War on Child Labor

Approximately 20,000 truck drivers in Brazil will receive information on how to identify and ...

Brazilian Indians Want Multinationals to Return Their Land

At the heart of the Pascoal Mount area, 200 Pataxó from 11 villages located ...

Brazil Government Says It Has More than Delivered on Land Reform Promises

The official numbers are in: this year, Brazil’s National Agrarian Reform Institute (INCRA) settled ...

Aljazeera Opens Brazilian Office

Aljazeera, the most famous television channel in the Arab world, will open a branch ...

In Brazil, Buggies Never Go Out of Style

The buggies, those little hoodless cars with fiberglass bodies and large back wheels, have ...

Flying Black America to Bahia, Brazil

Avocet Travel announced its new vacation packages, including non-stop charter air service from New ...

Shedding Movie Light on Brazil’s and Latin American Left

Perhaps 2004 will go down in history as the year the Latin American Left ...

Brazil, the South American Tiger

In New York, accompanying Brazilian President Lula in a trade mission, Brazil’s Minister of ...