Stocks down in Mexico, up in Brazil, Argentina, Venezuela

<a href=www.sfgate.com>SFGate.com Tuesday, May 13, 2003
(05-13) 14:34 PDT MEXICO CITY (AP) --

Mexican stocks edged lower Tuesday, influenced by weakness in U.S. equities markets.

The market's key IPC index closed down 0.1 percent or 4.54 points to 6,491.89. At the end of 2002, the IPC stood at 6,127.09.

Volume was 95.8 million shares worth 1.29 billion pesos, well above Monday's 52 million shares worth 756.2 million pesos.

A Mexico City trader said the market continued to be tied to the performance of the U.S., where the Dow Jones Industrials fell 0.5 percent despite some strength in technology stocks that kept Nasdaq losses to a minimum.

The trader said hesitant U.S. markets were making it hard for local stocks to add to recent gains.

Mexican bellwether Telmex L shares fell 1.4 percent to 15.36 pesos, while the L shares of its sister wireless telephony concern America Movil slipped 0.6 percent to 8.99.

Broadcaster TV Azteca CPO shares closed down 1.9 percent to 3.63, and media group Televisa CPO shares ended 1.2 percent lower at 15.16.

SAO PAULO, Brazil (AP) -- Brazil's stocks rose Tuesday as investors bet on an interest rate cut next week after three better-than-expected inflation reports hit the market.

Despite selling on New York exchanges, the main Ibovespa index rose 0.8 percent to 13,429 points from Monday's finish of 13,320 points. Tuesday's close was the highest since April 2002.

Inflation results from the IGP-M, Fipe and IPCA indices showed price pressures are easing at a good clip. The trend could prompt the central bank to lower interest rates from 26.5 percent at a May 21 monetary policy meeting.

Most stocks gained across the board.

Jetmaker Embraer extended Monday's gains, rising 3.6 percent to 11.12 reals on news of a $2.1 billion order from U.S. Airways. The company will release what are expected to be weak first-quarter results later Tuesday, but the company may tell investors it's more confident about future sales strength.

Oil giant Petrobras rose 1.6 percent to 54.35 and bellwether Telemar gained 1.5 percent to 35.00

AES unit Eletropaulo ended flat at 31.99 after the U.S. parent company said it would present a new debt rescheduling proposal this week that's designed to halt a government plan to takeover and resell the debt-saddled company.

BUENOS AIRES, Argentina (AP) -- Argentine stocks dropped Tuesday for the second day in succession amid intense speculation that Carlos Menem would withdraw from Sunday's presidential elections.

The large-cap Merval Index slipped 5.12 points, or 0.8 percent, to 618.60 points, while the broader General Index lost 263.66 points, or 0.9 percent, to close at 28,671.47 points.

Recent polls have shown government-supported Nestor Kirchner winning the second round runoff by a landslide. The Merval fell 2.2 percent Monday on the assumption that Kirchner, perceived as the less market-friendly of the two candidates, would be the next president. But the possibility of Menem's last-minute withdrawal caused a further drop.

"The rumors that Menem would drop out are very strong," said Guillermo Wilhelam of local stockbrokers Puente Hermanos. "In the first round, Kirchner had only 22 percent, so this would mean he becomes president with very little political support."

On Tuesday, volume totaled 42.3 million pesos.

CARACAS, Venezuela (AP) -- Venezuelan shares ended slightly higher Tuesday, following the market's biggest stock, CA Nacional Telefonos de Venezuela, or CANTV, which gained 2 percent.

The IBC General Stock Index, of which CANTV accounts for 40 percent, closed at 8,790 points, up 33 points, or about 0.4 percent. Total trading was equivalent to about US$518,000.

CANTV gained 50 bolivars, or about 2 percent, to close at 2,500. Financial conglomerate Mercantil Servicios Financieros 'A' shares ended 0.6 percent lower at 1,312 each.