Nov. 3 (Bloomberg) -- Brazil's benchmark stock index rose a fourth day on expectations that economic growth in the U.S. will spur corporate profits in emerging markets.
The Bovespa index of the 57 most-traded shares of the Sao Paulo stock exchange rose 492.01, or 1.6 percent, to 31,391.72 as of 11:32 a.m. New York time. Tele Norte Leste Participacoes SA, or Telemar, the stock with the heaviest weighting of the index, led the gain.
``Companies in general take advantage of global economic growth,'' said Pedro Thomazoni, who handles proprietary stock trading at Banco Votorantim in Sao Paulo. ``The global scenario is favorable for equities.''
Federal Reserve Chairman Alan Greenspan reinforced optimism in comments to a joint Congressional committee, saying that ``the longer term prospects of the U.S. economy remain favorable.'' U.S. productivity, a measure of how much employees produce, rose at a 4.1 percent annual rate in the third quarter, the Labor Department said, more than economists had expected. Labor costs fell at a 0.5 percent pace, the first decrease since the second quarter of 2004.
In Mexico, the Bolsa index rose 62.26, or 0.4 percent, to 15,958.74. Mexican stocks also got a boost from the U.S. economic data, said Carlos Hermosillo, a senior analyst with Vector Casa de Bolsa in Mexico City. The U.S. buys about 85 percent of Mexican exports.
The drop in labor costs `` signals that interest rates aren't going to rise aggressively in the U.S. and at the same time investors are still focusing on strong third-quarter results of Mexican companies,'' Hermosillo said.
Elsewhere in Latin America, Argentina's Merval rose 2.7 percent to 1682.78, the biggest increase since July 14 and the third-best performance among 79 world indexes tracked by Bloomberg.
The main indexes in Peru and Colombia rose, while the Chilean index fell. In Venezuela, the index was little changed. The Morgan Stanley Capital International index of Latin American stocks rose 1.6 percent to 2054.20.
The following stocks are making significant gains or losses in Latin American markets today. Symbols are in parentheses after the company name.
Brazil
Telemar (TNLP4 BS), the country's largest phone company, rose 92 centavos, or 2.3 percent, to 40.84 reais. In the year, the stock is down 4.3 percent, compared with Bovespa's 20 percent increase. The company's operating unit, Telemar Norte Leste SA, said it plans to sell $150 million of 2011 bonds in the international capital markets. The sale is expected to be completed next week, the unit said in a filing with Brazil's securities regulator.
Cia. Vale do Rio Doce (VALE5 BS), the world's largest iron-ore producer, rose 1.82 reais, or 2.1 percent, to 86.77 reais, gaining for a fourth day. Shares are rising on the prospects for price increases in iron-ore next year, said investors such as Ricardo Magalhaes, who manages about 2.5 billion reais ($1.1 billion) worth of equities and bonds with Mellon Global Investments in Rio de Janeiro.
Cia. Energetica de Minas Gerais (CMIG4 BS), Brazil's biggest combined power generator and distributor, rose 1.93 reais, or 2.2 percent, to 87.98 reais. Cemig, as the company is known, plans to pay an additional 900 million reais ($402 million) of dividends this year, Chairman Wilson Brumer said yesterday in an interview from London.
Sadia SA (SDIA4 BS), Brazil's biggest food processor, fell 6 centavos, or 1 percent, to 5.70 reais. Shares in Sadia fell 17 percent last month, the second-worst performance among Bovespa's members. The stock dropped on concern the company's assets could be affected by foot-and-month disease and the bird flu, said Roberto Rocha, sales director for Latin America at Deutsche IXE LLC.
Mexico
Grupo Mexico (GMEXICOB MM), Mexico's largest copper producer, rose 15 centavos, or 0.7 percent, to 21.50 pesos. Copper prices in New York rose for the third straight day amid concern rising fuel costs will hurt mining companies and curb supplies.
Carso Global Telecom SA de CV (TELECOA1 MM), the company that controls Telefonos de Mexico SA, rose 43 centavos, or 2.1 percent, to 21.09 pesos. Mexican billionaire Carlos Slim, the controlling shareholder of fixed-line phone company Telmex and wireless provider America Movil SA, said yesterday in Buenos Aires that the companies will invest $400 million in their Argentine units next year. Telmex (TELMEXL MM) shares rose 6 centavos, or 0.5 percent, to 11.14 pesos. America Movil (AMXL MM) rose 11 centavos, or 0.8 percent, to 14.35 pesos.
Consorcio ARA SA (ARA* MM), a Mexican homebuilder, rose 50 centavos, or 1.2 percent, to 41.50 pesos. ARA's net income rose 46 percent in the third quarter, the company reported Oct. 20.
source:bloomberg.com |
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