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Bovespa surges 4.2 percent
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December 7, 1998: 5:06 p.m. ET
Technical correction lifts Brazil; Mexico pares losses; Venezuela takes day off
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NEW YORK (CNNfn) - Stock trading in Latin America was mixed Monday, although the bias on the bolsas tended toward the up side with some help from a positive performance on Wall Street.
And nowhere more so than in Brazil, where the benchmark Bovespa index surged 319 points, or 4.2 percent, to close at 7,946, though on meager volume of 344 million reais (US$286 million).
Brazilian stocks kept moving higher throughout the day, helped by what traders said was a technical correction following sharp losses of 9.7 percent incurred last week after Congress rejected a key part of the social security reform.
"The market recovered significantly today following last week's cautious trade," one local trader said. "But the market lacked liquidity and volume was ridiculous compared to sessions in the last couple of days."
Stocks were also initially boosted by gains on overseas markets, particularly in Asia.
Looking ahead, traders said investors were awaiting the result from a key vote, due Wednesday, which could result in an increase in a tax on financial transactions.
In Mexico, stocks ended the day in positive territory as strong performances on Wall Street and in Brazil helped subdue nervousness over slashed government estimates for average 1999 oil prices, dealers said.
The key IPC index of Mexico's 35 leading stocks ended up 47.13 points, or 1.25 percent, at 3,806.96 points, in brisk volume of 132 million shares.
Mexico's Ministry of Finance said late on Friday it was cutting its average price estimate for its crude-oil exports for 1999 to between $9.50 and $10 per barrel from its earlier estimate of $11, amid falling global oil prices.
Investor concern over the new estimates kept stocks in negative territory for the first part of the day before their afternoon rebound.
"The Dow began to move a bit and I think that this is what pulled the market," said one analyst.
And in Venezuela, a day after former coup leader Hugo Chavez won the country's hotly contested presidential election, the Caracas Stock Exchange was closed for a trading holiday. On Friday, investors fearing a Chavez victory, drove stocks down 4.1 percent.
Elsewhere in the region, stocks in Peru shed 14.73 points, or 1.02 percent, to close at 1,431.28. Chilean shares finished off by 1.90 points, or 0.05 percent, at 3,717.26. And in Argentina, the bolsa's Merval index rose 2.35 points, or 0.52 percent, to 452.94. 
-- from staff and wire reports
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