|
Mexico takes the cake
|
 |
April 22, 1999: 5:03 p.m. ET
Mexican shares leap 3.6% on inflation, trade data; most others trek higher
|
NEW YORK (CNNfn) - With the exception of Canada and Chile, stock markets in the Americas posted strong gains Thursday, aided by an encouraging performance on Wall Street, a resurgence in international investor interest in Latin America and positive domestic economic news, among other factors.
The bolsa with the biggest stride belonged to Mexico. Stocks on the benchmark IPC index jumped 191.2 points, or 3.62 percent, to close at 5,475.67 as investors anticipated positive macroeconomic data indicating lower inflation and a declining trade deficit, traders said.
They were not disappointed.
Near the end of trade, Banco de Mexico, the country's central bank, reported the country's consumer price index rose 0.47 percent in the first half of April, which was slightly lower than the 0.49 percent inflation economists predicted for the first half of the month.
Separately, the Finance Ministry reported Mexico's preliminary trade deficit for March was $294 million, well below the $368 million forecast by economists.
Preliminary estimates for exports in March $11.697 billion, while imports were $11.991 billion, the ministry said.
In other news of interest to investors, Telmex, the dominant telephone carrier in Mexico and the heaviest weighted issue on the Mexican Stock Exchange, said it would report its first-quarter earnings after the bell on Thursday.
In Brazil, shares on the Bovespa index rode the seesaw Thursday, but near the end of trade had solidly reentered positive territory, trading up 136 points, or 1.24 percent, at 11,125.
Early in the day the index shot up 2.5 percent on expectations the country's currency would recover some of the ground it lost early in the week amid capital inflows from abroad and on optimism over Brazil's return to the international debt market with a five-year bond issue that was priced 675 basis points above U.S. Treasury notes Thursday .
Gains were then erased as investors consolidated profits and eyed an investigation into allegations former central bank president Francisco Lopes was involved in a currency market scandal.
By late afternoon, however, players' buying spirit was renewed, allowing the Bovespa to beat its way out of the red.
In related news, in a fresh effort to lure dollars to Brazil, the country's central bank announced measures to ease rules governing funds that are raised abroad for the purpose of productive investment.
In currency news, the real closed up 1.6 percent at 1.7 against the U.S. dollar.
Stocks on Venezuela's IBC index rose 106.51 points, or 2.13 percent, to close at 5,099.43 as investors' concerns over political tensions eased on news President Hugo Chavez will accept a fast-track powers bill due to be approved by Congress Thursday, despite the fact that it excludes some of the legislation he was seeking. The enabling law will grant Chavez power to push through a wide range of economic legislation by decree.
In related news, prices in oil, the country's main export, continued to rally Thursday.
On other Latin bolsas, stocks turned in a positive performance, with the exception of Chile, where shares were down 1.13 percent at 4,548.85 in late afternoon trade after U.S.-based Duke Energy Corp. (DUK) withdrew its tender offer for it, traders said.
Elsewhere, Argentina's Merval index closed 0.93 percent higher at 516.18, while stocks on Peru's General Index rose 0.95 percent to 1,645.07 on the back of strong international metals prices, which pushed up mining stocks. In Colombia, equities jumped 2.43 percent to 1,070.73 as falling domestic interest rates continued to lift the market higher.
Toronto lets go gains
Stocks in Toronto ventured into positive territory twice Thursday but could not hold onto their gains as some resources stocks dragged the market lower.
The Toronto Stock Exchange's key 300 Composite Index edged down 2.77 points, or 0.04 percent, to finish trade at 7,017.00, off the day's lows.
The exchange's 14 subindexes were about split between advancers and decliners. The paper and forest sector led the losers, dropping 2.05 percent, while the metals and minerals group got out front among the gainers with a rise of 2.91 percent.
-- from staff and wire reports
|
|
|
|
|
 |
|
