Brazil Takes Its Profit and Runs

Latin American markets ebbed across the board, as investors cashed in on recent gains. Brazil, which has been a market leader this week in the region, succumbed to profit-taking, as did Argentina.

Meanwhile, the Mexican market broke its winning streak, partly due to pressure from America Movil.


Brazil’s benchmark Bovespa Index ebbed 74.47 points, or 0.28%, while Mexico’s benchmark Bolsa Index slipped 61.70 points, or 0.42%. Argentina’s Merval Index slumped 27.28 points, or 1.78%.


Brazilian shares returned early session gains and moved lower on the day. A slide in crude oil prices had initially aided investor sentiment, as Brazil is a net importer of oil.


The U.S. Energy Department noted in its latest weekly inventory report that crude stocks rose by 196,000 barrels, whereas analysts expected a decline. Nevertheless, oil prices remain near US$ 61 a barrel.


In economic reports, São Paulo’s Fipe research institute said that the consumer price index in São Paulo rose 0.30% in July, compared to a 0.20% decline in June.


Among the day’s financial releases, steelmaker Gerdau SA said that its second-quarter net profit edged up to 892.6 million reais from 873.3 million reais a year ago. Net revenue totaled 5.435 billion reais, up from 5.299 billion reais last year.


Elsewhere, petrochemicals firm Braskem swung to a second-quarter net profit of 428 million reais, reversing a year-earlier loss of 302 million reais. A reduction of net debt and improvements to its operational performance aided the most recently reported results. Net revenue rose to 2.9 billion reais from 2.7 billion reais, while EBITDA slipped to 570 million reais from 615 million reais.


Airlines were active on research reports. A major investment bank upgraded Gol to “outperform” from “market perform.” Separately, a different investment house initiated coverage on TAM Airlines with a “buy” rating.


Mexican shares receded, after the benchmark IPC Index reached record highs for three consecutive sessions. Mexican issues also did not receive encouragement from U.S. markets, which endured a lackluster session. The U.S. is a key trading partner with Mexico.


In deal headlines, wireless phone firm America Movil SA confirmed its purchase of Chile’s Smartcom from Spain’s Endesa for US$ 472 million.


Turning to economic reports, the National Statistics Institute, or Inegi, said that the consumer confidence index rose to 102.2 in July from 100.7 in June. The year-ago figure was 96.0.


Elsewhere, fast-food operator Alsea SA agreed to buy an approximate 22% stake in SC de Mexico, whose Cafe Sirena unit manages Starbucks in Mexico.


Argentine stocks slid lower on the day, mostly due to profit-taking in the wake of strong market gains. The national statistics agency, or INDEC, said that the consumer price index leapt 1.0% in July from the prior month, marking a 9.6% increase on the year. Still, the July reading landed beneath analyst expectations. Prices in the entertainment sector were notably higher.


In other news, the International Monetary Fund and Argentina are currently discussing “the next steps for the next few months” to reach a new loan accord, according to an IMF official.


Thomson Financial Corporate Group – www.thomsonfinancial.com

Tags:

Ads

You May Also Like

Brazil Studying Ecological Impact of Petrobras on the Amazon

Brazilian researchers started a journey along 400 kilometers of the upper Amazon River as ...

The Search for Intelligent Life on Planet Brazil

No one seems to be seriously considering cooperation across party lines on a grand ...

Brazil May Appeal to WTO to Overturn European Ban on Its Beef

The Brazilian government on Tuesday, February 5, sharply criticized the European Union's decision to ...

Rice Goes to Brazil to Discuss FTAA and Venezuela

United States Secretary of State Condoleezza Rice arrives in Brazil next tomorrow. It is ...

In Brazil 90 Million Have No Sewage Collection

The Inter-American Development Bank (IDB) and Brazil’s Ministry of Cities signed a loan contract worth ...

Brazilian Press Steps Up Coverage of Global Warming

Newspapers from Brazil are covering climate change more frequently, according to a study published ...

Iron Ore Makes Espí­rito Santo Brazil’s Second Largest Exporter to Arabs

Brazil’s southeastern state of EspÀ­rito Santo has risen from fifth to the second place ...

Older Brazilians Learning How to Live Alone

One in every ten Brazilians lived alone last year. This is one of the ...

U.S.A. Calendar

FRIDAY 1 HOLLYWOOD, FLOR. 9:00 PM – Clauduarte Sá at Brazil Samba Café LOS ...

Brazil’s Motor Vehicle Production Falls 40%, But Industry Is Pleased

The motor vehicle production in Brazil dropped 7.9% in October, in comparison to September. ...