Latin stocks take beating
|
|
May 14, 1999: 5:15 p.m. ET
Shares drop after U.S. inflation data ignites interest rate hike fears
|
NEW YORK (CNNfn) - Latin American markets took a hit Friday, after U.S. inflation data awakened fears of a possible hike in interest rates.
In Mexico, the IPC index of leading stocks shed 109.66 points, or 1.82 percent, to end at 5,913.20 points, resulting in a weekly loss of 0.85 percent.
"The Dow pulled down the bourse here as it reacted to the (U.S. April) consumer price index figure that was higher than the market had expected," one trader said.
The U.S. April CPI came in at rise of 0.7 percent, well above the 0.4 percent that the market anticipated. The Dow ended lower 1.75 percent to 10,913.32.
Venezuelan shares were also was affected by news of higher-than-expected rise in U.S. consumer prices.
Shares fell 2.7 percent amid profit-taking, though stocks gained about 7.7 percent for the whole week, spurred by the steady rise in the price of oil, Venezuela's main commodity.
The IBC index of leading shares dropped 175 points to close at 6,356.65, with 12 stocks ending down, 11 unchanged and seven higher, according to preliminary figures from the Caracas Stock Exchange.
Trading was lighter than average with 556 trades worth 1.77 billion bolivars ($3.0 million) recorded.
"The market was rather quiet. Like elsewhere in the region, adjustments were due to the rise in inflation in the United States," said Carlos Sanchez of Activalores brokerage.
Most traders said they expected Venezuelan shares next week to resume their rally, thanks to rising oil prices and cautious optimism toward the economic reforms adopted by the government of President Hugo Chavez.
Brazilian shares also backtracked, with the Bovespa index falling 111 points, or 0.89 percent, to 12,348. Chilean shares were also weaker, falling 30.88 points, or 65 percent, to 4,715.39. In Argentina, stocks lost ground, as the MerVal index shed 0.59 points, or 10 percent, to close at 546.05.
Peruvian stock bucked the trend, with the Lima General finishing 3.97, or 0.23 percent, higher at 1,695.50.
Canadian markets dip
Toronto stocks also were taken lower along with a tumbling Dow as higher-than-expected U.S. inflation data roiled markets.
The 300 Composite index fell 170.65 points, or 2.4 percent, to close at 6,886.50, as more than 104 million shares worth C$2 billion traded hands.
All of the exchange's 14 subindexes posted losses, led by a 170.65 point fall in conglomerates.
-- from staff and wire reports
|
|
|
|
|
|