Americas Markets Rise as U.S. Forces Advance

Friday, April 4, 2003 07:54 PM ET  Printer-friendly version <a href=www.quicken.com>A Wall Street Journal Online News Roundup

Americas markets closed mostly higher Friday, with Toronto stocks flat as investors exercised caution ahead of the weekend, which could see U.S. troops drive into the heart of Iraq's capital.

Even as coalition forces captured Baghdad's airport, a purported appearance by Saddam Hussein on Iraqi television stirred debate about the leader's fate. In addition, Iraq's information minister warned his troops were preparing to launch an "unconventional" counterattack that wouldn't involve chemical or other weapons of mass destruction.

War worries, along with negative U.S. employment data, left Canadian investors reluctant to assume large equity positions ahead of the weekend.

Venezuelan shares also ended mostly unchanged, with the market's biggest stock, CA Nacional Telefonos de Venezuela, up one bolivar to 2,426 bolivars.

Argentine stocks rose, with much of the attention focused on market-leader Perez Companc and its local holdings, after the government went public with its doubts about aspects of the energy giant's sale to Brazilian oil company Petrobras. On Thursday, presidential spokesman Luis Verdi said President Eduardo Duhalde was unhappy about Petrobras's gaining a large stake in Perez Companc's electricity holding Transener, as part of the sale.

Despite the uncertainties surrounding the deal, Perez Companc closed 0.5% higher at 2.06 Argentine pesos. Meanwhile, Transener rose 10% to 73.8 centavos. Another Perez Companc holding -- natural gas distributor TGS -- also proved immune to the government's doubts -- lifting 4.6% to 1.36 pesos.

Analysts said investors were discounting that Argentina's antitrust body would eventually give the thumbs up to the sale of Perez Companc -- even if that requires some compromise over Transener's fate.

Further gains in the Brazilian real as global equity markets traded sideways ahead of a war-filled weekend helped to boost the country's Bovespa Index. Brazil's real gained 1.1% Friday to 3.22 reals. The currency gained about 5% this week, which is helping ease the inflation outlook and reduce the chances of a central bank interest-rate increase.

Mexican stocks rallied to their highest level since Jan. 20 as the market played catch-up on gains in blue-chip shares. Leading the rally, Walmex's Class V shares rose 3.7% to 28 Mexican pesos, while its Class C shares added 4.3% to 25.02 pesos.