|
Mixed day in Americas
|
 |
May 20, 1999: 4:57 p.m. ET
Some markets rebound from Wednesday's losses, but not all
|
NEW YORK (CNNfn) - The picture for stocks in the Americas was very much mixed Thursday.
Despite repeated assurances from Argentina that it was not going to devalue its currency - a rumor to that effect felled Latin stocks on Wednesday -- investors in Latin markets continued to worry that all was not well. But elsewhere market players turned their attention to other issues.
Ironically, while Argentina's stock market appeared to recover from fear of a devaluation, Brazil's currency and stock markets continued to feel pressure.
The Bovespa Index was trading up 6 points, or 0.05 percent, at 12,125 by late afternoon, having pared early gains on optimism over the Central Bank's seventh rates cut in two months.
The key Selic reference was trimmed to 23.5 percent from 27 percent on Wednesday night. The Selic determines the yields on domestic debt and is used to set consumer credit rates.
In currency trading, the real slumped 0.83 percent to close at 1.686 against the U.S. dollar, its lowest closing in more than three weeks.
"The Argentina speculation is what's weighing on the market most today," said Ricardo Russo, a forex trader at Banco Credibanco in Sao Paulo. "The concern is that a devaluation in Argentina could upset part of Brazil's economic stabilization plan."
In Mexico, shares on the IPC Index made a late-day recovery, jumping 68.29 points, or 1.19 percent, to close at 5,799.49, having traded in the red for much of the afternoon after erasing timid morning gains.
In economic news, Mexico's retail sales rose 2.7 percent in real terms in March over the same month last year, the Mexican statistics institute INEGI said Thursday.
Wholesale sales in March rose 2.2 percent compared to the same month a year ago, INEGI said.
The results were well ahead of expectations. Economists had forecast retail sales to fall 0.58 percent and wholesale sales to fall 1.96 percent.
The story was less cheerful in Venezuela, where stocks on the IBC Index continued to get hit hard, falling 154.03 points, or 2.59 percent, to 5,803.38.
In recent sessions, profit seeking, concerns over the resignation of four cabinet ministers and worries about Argentina have taken back some of the bolsa's more than 50 percent gains garnered during a two-month rally that was spurred on by an improvement in oil prices, optimism over economic reforms and renewed international investor interest in Latin America.
On other Latin bolsas, stocks on Argentina's Merval Index closed up 1.19 percent at 534.20, and in Peru's Lima General Index, shares rose 1.06 percent to 1,683.04. Equities in Chile took the opposite tack, falling 0.44 percent to 4,602.38 by late afternoon.
Toronto dives near day's end
Stocks in Toronto could not hold onto their gains won early in the day on the back of positive performances in several sectors.
The Toronto Stock Exchange's 300 Composite Index fell 40/97 points, or 0.58 percent, to 6,973.40.
Of the exchange's 14 subindexes, most ended the day in the red, led by a 2.79 percent decline in metals and minerals, a 1.38 percent loss in real estate and construction, and a 1.29 percent drop in financial services.
The communications and media sector was one of the few to buck the downward trend, rising 1.44 percent. 
-- from staff and wire reports
|
|
|
|
|
 |
|
