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Stocks in Americas mixed
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April 12, 1999: 5:09 p.m. ET
Brazil, Mexico, Toronto move higher, but profit seekers push others into red
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NEW YORK (CNNfn) - Just as Wall Street picked itself up following the initial shock of a first-quarter earnings warning from Compaq, the world's largest PC maker, so too did many markets in the Americas.
Several posted gains on the back of strength in other sectors and continued optimism over domestic economic news, while others ended the day with only moderate losses as investors sought to pocket profits from recent gains.
In Brazil, stocks were up 110 points, or 0.97 percent, at 11,439 near the close of trade.
In currency news, the real firmed by 0.6 percent to close at 1.695 against the greenback as dollars entered the market late in the session and as optimism spread over the fate of Latin America's largest economy, traders said.
Mexican shares on the IPC index recovered from an early Dow-inspired downturn to end the day up 98.4 points, or 1.89 percent, at 5,303.28, near the record closing level of 5,369.48 from Oct. 21, 1997.
International investors who stepped in to buy stocks also boosted the country's currency. The benchmark 48-hour or spot peso gained 5.3 centavos to trade at roughly 9.507 per dollar, while the 24-hour peso picked up 5.35 centavos to approximately 9.502 per dollar.
In Venezuela, stocks on the IBC index inched up 7.63 points, or 0.18 percent, to 4,219.71 as the market closely eyed Congress to see whether lawmakers will grant President Hugo Chavez expanded powers to help him tackle the country's economic crisis.
The country's currency, however, weakened by 1 bolivar to close at 586 against the dollar as investors fretted that Chavez would fulfill a pledge to declare a state of emergency if Congress fails to approve the special powers he is requesting.
Profit seekers took the shine off other bolsas in the region. Peru's Lima General index fell 0.54 percent to 1,491.01. In Argentina, stocks slipped 0.09 percent to 443.99, while in Chile, they were trading down 0.27 percent at 4,371.99 near the end of the session. But in Colombia, equities on the IBB index took the opposite route, surging 4.38 percent to close at 985.57.
Toronto takes the high road
Toronto stocks, abetted by firmer banks and precious metals, rebounded from earlier weakness to trade mixed with a positive bias on Monday.
The bellwether TSE 300 Composite index closed up 49.13 points, or 0.71 percent, at 6,938.90 in active turnover.
About half of the TSE's 14 subindexes ended the day in firmer territory. Financial services stocks led the way, rising 3.18 percent, followed by the gold and precious metals sector, which climbed 2.94 percent in tandem with improving gold prices.
Utilities stocks took the biggest hit of the day, with the subindex falling 1.64 percent.
Analysts were surprised by the resilience of North American stocks in the face of a profit warning by Compaq Corp., the world's largest personal computer maker.
"My sense was the market was very much overbought last week," said Irwin Michael, portfolio manager at ABC Funds.
"On balance, you have to be surprised by the strength in the (U.S.) market just as we expected it to fall 100, 200 points." 
-- from staff and wire reports
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