Brazilian Stocks Bump Up Despite Continued Political Chaos

Brazilian stocks went up, but Latin American markets ended mixed to higher, amid declining oil prices and mixed to positive U.S. job data. Traders and corporations also continued to assess the impact of Hurricane Katrina.

Brazil’s benchmark Bovespa Index rose 356.92 points, or 1.28%, while Mexico’s benchmark Bolsa Index climbed 286.11 points, or 1.98%. Argentina’s Merval Index fell 20.26 points, or 1.26%.


Brazilian shares rose strongly, as investors remained upbeat in light of positive economic data released earlier in the week. Overseas funds also flowed ahead of a U.S. holiday and Brazil’s independence day next week.


Political shenanigans were relegated to the back burner ahead of the weekend, although late yesterday, Juscelino Dourado, a top aide to Finance Minister Antonio Palocci, presented his resignation a day after denying any knowledge of an alleged kickback scheme.


On the corporate front, Bradespar announced that Portuguese bank Banco Espí­rito Santo plans to sell 8.28 million of preferred shares it owns in Bradespar, which could raise more than 410 million reais.


In other deals, InBev SA agreed to buy the remaining 30% stake in K.K.’s brewing activities in China in order to strengthen its position in that country.


Separately, steelmaker Usiminas expects steel prices to stay at historically high levels for at least the next two years due to robust demand from China and high production costs. The firm is also looking to boost its foreign trade, especially to the U.S. auto industry, according to news services.


On the research front, an investment bank raised its price target on waterworks company Sabesp to US$ 20.62 from US$ 18.15 for year-end 2006, citing a strong recovery in sales volume in the first half of this year.


Mexican issues, meanwhile, advanced strongly. Economic data from the U.S., its key trading partner, was mixed. The unemployment rate eased to 4.9% in August from 5.0% the prior month, while non-farm payrolls climbed by 169,000, versus a stronger 242,000 in July.


Wall Street had predicted a jobless rate of 5.0% and payroll growth of 190,000. Payroll data was revised higher for June and July.


In company news, Cemex will expand its joint venture with Ready Mix USA, adding 27 concrete plants and four cement block plants to the partnership and receiving US$ 91.6 million and unspecified additional resources.


Also of note, workers at the Sicartsa steel plant in southern Mexico rejected a company proposal aimed at ending a month-long strike.


In addition, Mexican state oil monopoly Petroleos Mexicanos said that 311,000 barrels a day of its crude exports have been shut in because of Hurricane Katrina.


Argentine stocks declined, on profit-taking after hitting a record yesterday. On the economic front, local analysts downwardly revised their August inflation forecast from a 0.7% gain to an increase of $0.6%, according to the central bank’s weekly survey.


In other news, Telecom Argentina expects to book a gain of 1.584 billion pesos in the third quarter from its just-completed US$ 2.63 billion debt restructuring, according to a filing.


On the M&A front, Spanish-Argentine oil firm Repsol stated it would not present an offer for Turkish Oil Refinery Co., saying, “The price was overvalued and the synergies didn’t quiet match.”


Thomson Financial Corporate Group – www.thomsonfinancial.com

Tags:

You May Also Like

1.758 Million Barrels of Oil a Day. A New Record for Brazil’s Petrobras.

Brazil’s oil company Petrobras ended the month of February with an average daily petroleum ...

Protests against Bush in São Paulo

Anti-Bush Protest in Brazil Turns into War Against Police

A popular protest against the visit of American president George W. Bush to Brazil ...

Sofia’s misfortunes

And very slowly I saw the teacher, the whole of him. Very slowly I ...

Brazil Joins Neighbors to Fight Child Sex Tourism

South American ministers of Tourism, gathered Wednesday, October 26, at the World Forum of ...

A Gasolina/Ethanol pump in a Brazilian Gas/Ethanol station

Brazil and US Join Forces to Create Ethanol Standard

Brazil and the United States are working together to create a global standard for ...

Brazil Pays Off UN Debt After Over 10 Years of Deadbeatness

Brazil’s Ministry of Foreign Relations has announced that Brazil has paid off its UN ...

PCC, gang First Command of the Capital

Brazil’s PCC Prison Gang May Be Murderers But the State Is Their Accomplice

For two weeks, last month, the city and state of São Paulo in southeastern ...

Brazil Savannah Becomes Magnet for Multinationals Despite Poor Infrastructure

Apart from research, the development of agriculture in the cerrado, the Brazilian savannah, is ...

It Happened One Night in Brazil

What wasn’t natural was the jolt of electricity that I felt as I grasped ...

Let’s Hope Brazil’s Corruption Has Hindered Plans for a ‘Democratic Dictatorship’

The fact that the Lula da Silva administration has been reportedly involved in numerous ...