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Most Latin stocks climb
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March 18, 1999: 4:49 p.m. ET
Electric utilities light up Brazil stocks, while Mexican shares manage to stay positive
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NEW YORK (CNNfn) - With the exception of Brazil's Bovespa, which rose 2.4 percent, the majority of Latin American stock exchanges Thursday posted slight to moderate gains.
Venezuelan stocks bucked the upward trend, however, with trade was doused by policy doubts.
Brazilian shares, led by electric utilities, rose 2.44 percent amid expectations of another wave of privatizations, traders said.
Sao Paulo's key Bovespa index climbed 260 points to close at 10,894.
"Foreign investors are even buying up electric companies cautiously on expectations they will soon be privatized," said a trader at Solidus brokerage in Porto Alegre.
The gains were also fueled by optimism that a proposed increase in the CPMF financial transactions tax will clear another big hurdle in Congress on Thursday, traders said. The bill is considered key to the government's austerity drive.
"People are counting on the approval of the CPMF," a trader at a local brokerage said.
Brazil's Chamber of Deputies, the lower house of Congress, began a second round of voting on the bill more than two hours behind schedule, although the long-awaited measure was expected to win approval.
Shares of electric utilities such as Cia Energetica de Sao Paulo preferred, Eletrobras preferred and Cemig preferred led the market higher after reports of the government's plans to push ahead with the privatization schedule of Brazilian power companies this year.
In currency news, Brazil's real finished trading at 1.855 per dollar Thursday, 1.3 percent firmer than its previous close, helped by new Central Bank measures to relax import financing rules, traders said.
The Central Bank late on Wednesday announced it was easing rules to give importers better access to credit and allow more dollars to roll into the local currency market.
Stocks in Mexico seesawed in slow trade throughout much of the day, but the key IPC index managed to post a slight gain of 9.63 points, or 0.2 percent, to close at 4,864.80, with profit seekers and upward movement on the Dow pushing the bolsa in opposite directions.
"The market is seeing profit-taking in general, but there's little volume and the stability in the exchange rate is also generating tranquility in the market," a trader said.
In other news, Mexico's Finance Ministry said private consumption rose 2.3 percent in 1998's fourth quarter compared to the same period in 1997, and for the year it rose 6.4 percent over 1997.
The figures are closely watched as an indication of consumer strength and have also been used to measure the impact on government spending of budget cuts made during 1998.
Shares in Venezuela dipped for the second consecutive day, falling 10.56 points, or 0.27 percent, to 3,971.75. Investors' continued uncertainty regarding the economic policies of President Hugo Chavez put a damper on the market, traders said.
Benchmark stock Electricidad de Caracas bucked the trend, however, closing up 2.0 bolivars a share at 166.0 bolivars a share.
"The market was quiet due to the uncertain economic situation. It was not supported by the recent strengthening in oil prices or the strengthening in other world stock markets," said Gonzalo Alonso of Activalores brokerage.
Planning Minister Jorge Giordani told a news conference Wednesday that Chavez would announce his economic package March 25.
On other bolsas in the regions, stocks posted moderate gains. In Peru, equities got a bounce as investors purchased shares in benchmark Telefonica del Peru which was considered undervalued in the market, traders said. Lima's General Index rose 0.87 percent to 1,452.64. Stocks in Argentina inched up 0.18 percent to 412.73, while Chilean shares crept up as well, rising a mere 0.19 percent to close at 3,989.38. Colombian issues, meanwhile, ended the day unchanged at 921.14 as investors booked profits after recent speculative rises in manufacturing and retail stocks. 
-- from staff and wire reports
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