• Categories
  • Archives

Strong Surplus Gives Brazilian Stocks Some Muscle

Brazilian stocks continued to move higher, although at a more modest pace after Thursday’s rally. Investors continued to cheer, after indications that the U.S. Federal Reserve may soon be ready to freeze rates following 17 consecutive hikes.

Latin American issues, in general, once again advanced broadly on the session, with Mexico taking the lead ahead of Sunday’s highly anticipated presidential election.

Brazil’s Bovespa Index rose 143.99 points, or 0.39%. Mexico’s benchmark Bolsa leapt 238.84 points, or 1.26%, while Argentina’s Merval Index advanced 21.44 points, or 1.27%.

In economic reports, the Brazilian central bank said the country’s primary budget surplus came in at a stronger than expected 6.3 billion reais in May, down from a record surplus of 19.43 billion reais the prior month. The latest result brought the 12-month figure to 89.89 billion reais, or 4.51% of gross domestic product.

Within the mobile phone space, Vivo Participações declined sharply, after it said it will invest in rolling out a GSM platform by the end of 2006, but will be fully operational in three year’s time. Investors fear the endeavor will be costly; although, financial details were not released.

Flat steelmaker Usiminas reported in a regulatory filing that it expects to produce 4.2 million metric tons of crude steel and log sales volume of 3.9 million tons.

Mexican shares continued to move upward, as the country awaits Sunday’s, July 2, presidential election, which is seen as a tight race between Andrés Manuel Lopez Obrador and Felipe Calderon.

In economic news, the Finance Ministry said the government’s budget surplus was 21.3 billion pesos in May, thank to higher oil sales and tax collections. The accumulated budget surplus was 107.7 billion pesos.

Argentine issues jumped for the third-straight session; although, volume was thin amidst World Cup soccer, where Argentina lost to Germany.

Thomson Financial – www.thomsonfinancial.com


  • 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Your email address will not be published.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.


You May Also Like

The Typical Brazilian Homeless Is a Young Black Man with a Job

Male, between the ages of 25 and 44, black, literate, with a paying job.  ...


Tieta, Teresa Batista, Gabriela, Quincas Berro Dágua, Vadinho and Dona Flor. For many of ...

Uruguay Asks from Brazil a Bigger Role in the Mercosur

In his second visit to Brazil, the President of Uruguay, Tabaré Vasquez, said that ...

In Brazil, a Full Week of Bad News in Politics and the Market

Latin American markets ended mixed, with share movement somewhat muted. Brazil posted its fifth-straight ...

Brazil’s Lula Passes the Hat for Haiti

Brazilian President Luiz Inácio Lula da Silva took advantage of the Rio Group summit ...

Short Takes

Brazil has become the world’s largest corridor for cocaine. Sixty percent of the cocaine ...

Foreign Investors Keep Selling Brazilian Assets and Stocks Are Down 15% in 2010

Bovespa, Brazil’s  stock index and the real, the Brazilian currency, lost ground for a ...

Torture, death squad, 9,000 Killed in 5 years: a Portrayal of Brazil’s Police

One of the main criticisms of Brazil appearing in the Amnesty International Report 2006 ...

Looking for a Miracle

If Cardoso loses faith in Serra then he may turn to Lula just as ...