SAO PAULO, MEXICO CITY, June 20 (Reuters) - Latin American
stocks rose on Monday after Brazil's debt was upgraded by
Moody's, although investors were cautious given concerns Greece
may struggle to convince Europe to give it more financial aid.
The MSCI Latin American index .MILA00000PUS edged up 0.47
percent, rising for the second session. The index bounced off
its lowest since September last week after fears deepened last
that a Greek debt default could spur a global financial
crisis.
Moody's Investors Service upgraded Brazil's sovereign
credit rating a notch further into investment grade. The agency
noted improving government finances and economic growth and its
analysts said the government was "diffusing" a credit boom. For
details see
"It was expected the market would get a little pop after
Moody's upgraded Brazil. We may not be able to sustain it
because of the problems in Europe, but it certainly gives some
support to our market," said Paulo Petrassi, co-manager of Leme
Investimentos.
Brazil's central bank has been hiking interest rates to
cool its economy, which has pushed foreign investors to pull
out some cash on expectations of slower growth.
Analysts said stock markets around the world would see
further volatility on concerns Greece may have trouble
implementing spending cuts and tax hikes needed to convince the
euro zone to provide it with more financial aid.
Brazil's Bovespa stock index .BVSP rose 0.39 percent,
advancing for a second session after closing at its lowest
since early July 2010.
Shares in Vale (VALE3.SA), the world's biggest iron ore
producer, rose 1.38 percent and energy start-up OGX (OGXP3.SA)
put on 0.98 percent.
Mexico's IPC stock index .MXX dipped 0.11 percent as
shares of telecommunications firm America Movil (AMXL.MX) lost
0.51 percent.
The IPC rose early in the session, but hit resistance at
its 14-day simple moving average and gains wilted. The IPC has
been trading in a narrow range since recovering from a more
than seven-month low earlier this month.
Chile's IPSA index .IPSA rose 0.34 percent as retailer
Cencosud CEN.SN jumped 5.81 percent and its rival Falabella
FAL.SN climbed 5.03 percent.
Both companies had been punished on fears they could see
similar credit problems as retailer La Polar LAP.SN, which
has admitted it unilaterally renegotiated terms for more than
400,000 customers with years-old outstanding debts.
The company has estimated it will need to set aside an
extra $890 million, twice original estimates, to cover
potential losses.
La Polar shares plunged 66 percent when they resumed trading
on Monday after a suspension last week.
Source: www.reuters.com
stocks rose on Monday after Brazil's debt was upgraded by
Moody's, although investors were cautious given concerns Greece
may struggle to convince Europe to give it more financial aid.
The MSCI Latin American index .MILA00000PUS edged up 0.47
percent, rising for the second session. The index bounced off
its lowest since September last week after fears deepened last
that a Greek debt default could spur a global financial
crisis.
Moody's Investors Service upgraded Brazil's sovereign
credit rating a notch further into investment grade. The agency
noted improving government finances and economic growth and its
analysts said the government was "diffusing" a credit boom. For
details see
"It was expected the market would get a little pop after
Moody's upgraded Brazil. We may not be able to sustain it
because of the problems in Europe, but it certainly gives some
support to our market," said Paulo Petrassi, co-manager of Leme
Investimentos.
Brazil's central bank has been hiking interest rates to
cool its economy, which has pushed foreign investors to pull
out some cash on expectations of slower growth.
Analysts said stock markets around the world would see
further volatility on concerns Greece may have trouble
implementing spending cuts and tax hikes needed to convince the
euro zone to provide it with more financial aid.
Brazil's Bovespa stock index .BVSP rose 0.39 percent,
advancing for a second session after closing at its lowest
since early July 2010.
Shares in Vale (VALE3.SA), the world's biggest iron ore
producer, rose 1.38 percent and energy start-up OGX (OGXP3.SA)
put on 0.98 percent.
Mexico's IPC stock index .MXX dipped 0.11 percent as
shares of telecommunications firm America Movil (AMXL.MX) lost
0.51 percent.
The IPC rose early in the session, but hit resistance at
its 14-day simple moving average and gains wilted. The IPC has
been trading in a narrow range since recovering from a more
than seven-month low earlier this month.
Chile's IPSA index .IPSA rose 0.34 percent as retailer
Cencosud CEN.SN jumped 5.81 percent and its rival Falabella
FAL.SN climbed 5.03 percent.
Both companies had been punished on fears they could see
similar credit problems as retailer La Polar LAP.SN, which
has admitted it unilaterally renegotiated terms for more than
400,000 customers with years-old outstanding debts.
The company has estimated it will need to set aside an
extra $890 million, twice original estimates, to cover
potential losses.
La Polar shares plunged 66 percent when they resumed trading
on Monday after a suspension last week.
Source: www.reuters.com
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