Stocks lower in Mexico, Argentina, Chile; up in Brazil, Venezuela

<a href=www.sfgate.com>SFGate.com Tuesday, April 1, 2003
(04-01) 15:55 PST MEXICO CITY (AP) --

Mexican stocks closed lower Tuesday despite U.S. market gains, as local interest rates rose following the central bank's latest monetary tightening.

The market's key IPC index closed down 0.3 percent or 18.27 points at 5,895.76. At the end of 2002, the IPC stood at 6,127.09.

Volume was a modest 56 million shares worth 723.5 million pesos, compared with Monday's 59.4 million shares worth 774.7 million.

A Mexico City trader said the monetary tightening pursued by the Bank of Mexico to keep inflation in check was negative for local stocks.

Among the most active issues Tuesday, phone company Telmex L shares fell 1.4 percent to 15.76 pesos, retailer Walmex V shares fell 0.8 percent to 26 pesos, and banking group BBVA-Bancomer B shares fell 0.6 percent to 8.23.

Wireless phone service provider America Movil L shares rose 0.3 percent to 7.29, and brewer Modelo C shares rose 1.8 percent to 22.26.

SAO PAULO, Brazil (AP) -- Brazil's stock prices ended higher Tuesday as the country's C-bond and real rallied and global equity markets recovered slightly from war-induced gloom.

The main Sao Paulo index finished 2.8 percent ahead at 11,592 points, compared with 11,273 points at Monday's close.

Stocks rose as Brazil's real strengthened about 1 percent Tuesday to its best level since Jan. 14. The country's foreign bonds hit their best levels since May 2002 on signs Congress is getting ready to pass some key reforms the government has promised the market.

On the stocks front, key fixed-line telecoms saw heavy interest. Bellwether Telemar rose 5.3 percent to 29 reals. Jet-maker Embraer rose 4.7 percent on news American Airlines, a key client, has struck a deal with unions to stave off bankruptcy.

Oil giant Petrobras gained 2.6 percent to 47.60 and retail companies like supermarkets chain CBD rose 3 percent to 44.

SANTIAGO, Chile (AP) -- Share prices on the Santiago Stock Exchange closed lower Tuesday, with uncertainty about the Iraq war weighing along with lower utilities share prices and a plunge in copper cable maker Madeco, traders said.

Chile's blue-chip Ipsa index dropped 0.2 percent to 1,006.93 points from 1,008.64. The narrower Inter-10 index of more liquid, internationally traded Chilean shares lost 0.3 percent to 98.83, compared to 99.04.

Volume plummeted to a low 4.54 billion pesos from 10.13 billion as uncertainty drove investors out of the market, traders said.

Liquidity will also be reduced by the capital increase approved by shareholders in utilities heavyweight Enersis, which in a first phase will see its Spanish parent, Endesa, raise its stake in the company above 65 percent.

Enersis' shares will trade close to the 60.42 issue price for new shares and also limit liquidity at its Endesa Chile unit. Enersis ended down 1.7 percent at 57, while Endesa Chile lost 0.2 percent to 172.

CARACAS, Venezuela (AP) -- Venezuelan shares ended a bit higher Tuesday, with the IBC General Stock Index closing at 8,570 points, up about 0.7 percent.

The market's biggest stock, telephone giant CA Nacional Telefonos de Venezuela, or CANTV, closed 45 bolivars, or about 2 percent, higher at 2,350.

CANTV's American Depositary Receipts, worth seven common shares each, were down 7 cents at US$8.91 each in late afternoon trade on the New York Stock Exchange.

BUENOS AIRES, Argentina (AP) -- Argentine stocks closed mixed Tuesday, with exporters falling back as the peso strengthened against the dollar and a late rally took the market back to near its opening levels.

The large-cap Merval Index closed down 0.62 point, or 0.1 percent, at 565.84 points, while the broader General Index finished 87.25 points or 0.3 percent higher at 27,008.56 points.

Despite last Friday's announcement that President Eduardo Duhalde had signed a decree ordering a year-old banking freeze to be lifted over the next four months, the peso gained ground Tuesday, closing at 2.965 per dollar, compared with 2.985 Friday.

Among the hardest hit of the export stocks were petrochemical company Indupa, which closed down 3.3 percent at 1.77, aluminum firm Aluar, which was 2.3 percent lower at 4.30, and carmaker Renault, which weakened 1.5 percent to 1.32.