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:

  • 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’s PT in State of Shock, Betrayed by Their Own

Brazil’s Workers’ Party (PT) has always been its best opposition, both outside and inside ...

U.S.A. Calendar

THURSDAY 1 BEVERLY HILLS 10:30 PM – Kátia Moraes at Bokaos (310) 659-1200 BERKELEY, ...

Brazil Expecting Largest Crop Ever Led by Soy, Corn and Rice

Brazil's agricultural producers should have their largest harvest ever in the 2007/2008 grain crop, ...

Child Labor in Brazil Is Part of Family Culture

The Brazilian Institute of Geography and Statistics’ (IBGE) Household Survey (PNAD) reports that child ...

Until World Gets Internationalized the Amazon Belongs to Brazilians Alone

In October 2000, I published an article entitled “A Internacionalização da Amazônia” (The Internationalization ...

Repairing Freeways Is Critical for Brazil, Says Minister

The repair and expansion of the country’s highway system is one of the government’s ...

Fifty Slaves Rescued in Brazil

The mobile inspection unit of Brazil’s Regional Labor Office (DRT) freed 50 rural laborers held ...

Aedes aegypti, the mosquito that transmits dengue

A Nasty Season of Dengue in Brazil, Argentina and Paraguay

In southern Brazil an estimated 45.000 cases of dengue have been announced. Argentina, on ...

AIDS drug Kaletra from Abbott

In Showdown with Brazil Over AIDS Drug Patent, Abbott Blinks First

On June 24, Brazil issued an ultimatum to the Illinois-based pharmaceutical corporation Abbott Laboratories ...

Brazil Offers Preferential Treatment to Africa and India

The Manaus Industrial Pole, in the city of Manaus capital of the northern state ...