|
Latins end week with cheer
|
 |
November 20, 1998: 4:47 p.m. ET
Bovespa rises 2.6 percent as others enjoy gains of between 1.3 to 5 percent
|
NEW YORK (CNNfn) - There were no losers among the major Latin American bolsas Friday, with stocks throughout the region benefiting from strong performances on overseas markets, particularly Wall Street.
Brazilian stocks added 2.6 percent to the Bovespa index Friday on greater optimism about the economic outlook, and the bolsa in Venezuela rose 1.3 percent.
Other exchanges, from Argentina to Peru, enjoyed gains of 1.4 to 5 percent.
Mexico's stock exchange, however, was closed in observance of Revolution Day.
Brazil runs on optimism, int'l markets
Brazilian shares ended a strong week with further gains Friday prompted by buoyant overseas markets, traders said.
Sao Paulo's Bovespa index of leading shares closed up 214 points, or 2.57 percent, at 8,531, up 12 percent on the week.
"The market was much more optimistic today, and without a doubt the generalized gains on foreign markets helped a lot," said one market analyst.
Profit consolidation hit shares on Thursday after days of solid advances, but stocks recovered Friday as investors took heart from IMF-led assistance for Brazil and progress on reforms.
The Bovespa touched highs not seen since mid-August when Russia declared a debt moratorium and sent world financial markets spinning. Brazilian shares tumbled nearly 40 percent before beginning a ragged recovery.
"The deal with Brazil and the IMF and the approval in Congress of the fiscal measures helped the bourse recovery," Eduardo Santalucia, investments director at Brazil's Sudameris bank, said.
Investors feel the government is making headway on necessary reforms and a fiscal-austerity package that is the linchpin of a confidence-boosting $41 billion loan deal from the International Monetary Fund (IMF).
Those two factors are luring even international investors back to the market, and daily volume has been up near $500 million compared with $300 million in September.
Allegations that Communications Minister Luiz Carlos Mendonca de Barros tried to influence the outcome of the massive Telebras privatization sent a shiver through the market Thursday but was not expected to weigh in next week.
"It's no big deal for the market," one trader said.
Electricity stocks were seen as the backbone of further gains in the short term, with company restructurings leading to better-than-expected profit margins, analysts said.
Eletrobras preferred jumped 6.01 percent to 33.50 reais at the close Friday.
Elsewhere in the region
Stocks in Venezuela enjoyed another day of solid gains, following Thursday's 2.32 percent jump. The key IBC index rose 51 points, or 1.31 percent, at 3,948.83.
In Peru, the bolsa proved the region's biggest winner, with the benchmark Lima General index leaping 72.06 points, or 5.02 percent, to 1,508.32.
Argentine shares were not far behind with a gain of 18.34 points, or 3.79 percent, to close at 501.940.
And in Chile, stocks finished stronger as overnight gains in overseas markets prompted Wall Street investors to snap up Chile's American depositary receipts, which in turn pushed up the local market, traders said. The key IPSA index traded up 52.94 points, or 1.37 percent, to finish the day at 3,907.62. 
-- from staff and wire reports
|
|
|
|
|
 |
|
