Markets surge higher across Latin America

Tuesday, May 27, 2003
(05-27) 16:18 PDT MEXICO CITY (<a href=www.sfgate.com>SFGate.com-AP) --

Mexican stocks closed higher in line with U.S. gains Tuesday, although trading volume was concentrated in a handful of companies.

Mexico's key IPC index ended up 104.53 points, or 1.6 percent, to 6,650.31. Volume totaled 112.8 million shares traded worth 1.5 billion pesos.

U.S. markets surged, making up for lost time due to the Memorial Day break Monday. Trading activity slowed to 10.9 million shares on the Mexican Stock Exchange, the bourse's lowest level year-to-date.

Financial group BBVA-Bancomer's B shares, which slipped 2 percent to 8.99 pesos, accounted for about 30 percent of the session's activity Tuesday.

Exchanges of phone operator Telmex's L shares, which rose 2.8 percent to 15.64 pesos, represented another 20 percent of trading volume.

Other gainers included media group Televisa's CPOs, which advanced 3.8 percent to 15.72 pesos.

Merrill Lynch raised its recommendation on Televisa shares Tuesday to "Neutral" from "Sell," citing the company's improved operating performance and cash management outlook.

However, the investment bank still prefers the stock of media competitor TV Azteca over that of Televisa. TV Azteca's CPO shares gained 4.5 percent to 3.92 pesos.

SAO PAULO, Brazil (AP) -- Brazilian shares made a strong showing Tuesday as the market digested a change in the central bank's debt management policy and New York markets registered large climbs.

The main Ibovespa index finished Tuesday's session up 3.1 percent to 13,246 points. Trading volume was a fairly heavy 724 million reals.

The market more than recovered from a 2.2 percent decline registered Monday following the central bank's announcement that it would no longer roll over all dollar-linked debt and forex swaps as they mature.

Brazilian stocks were also buoyed by strong gains on the New York exchanges.

Shares of long-distance carrier Embratel climbed 3.3 percent to 5.27 reals, Tele Centro Oeste rose 5.8 percent to 5.61 reals, and market bellwether Telemar ended the day 4 percent higher at 36 reals.

BUENOS AIRES, Argentina (AP) -- Argentine stocks rose slightly Tuesday edging near to their high point of the past five years, with the market remaining calm that new President Nestor Kirchner's government won't bring abrupt changes to the country.

The large-cap Merval Index edged up 0.3 percent, or 1.71 points, to 664.31 points, while the broader General Index gained 0.4 percent, or 110.91 points, to end at 29,972.03 points. Volume traded was a modest 37.6 million pesos.

That leaves the Merval near its highest point in the last five years when it reached 670.3 points on April 23.

Analysts say investors are seeing various signs that the Kirchner government -- which took over on Sunday -- is set to largely continue the economic policies of its predecessor.

On Tuesday, Economy Minister Roberto Lavagna -- who served in the same post in the previous administration -- announced his new team, keeping on many of the officials who had served him first time round.

Lavagna defended the creation of a new committee that will oversee the restructuring of Argentina's banking system. The Economy Ministry and the central bank will both serve on the committee, but the former will have the deciding vote for the first year, fueling concerns over an erosion in the monetary body's independence.

Financial stocks, which had risen Monday following the publication of the decree that established the committee, fell back Tuesday. Banco Frances slid 2.9 percent to 5 pesos and Banco Bansud lost 1.2 percent to end at 1.67 pesos.

SANTIAGO, Chile (AP) -- Share prices on the Santiago Stock Exchange closed slightly higher Tuesday, helped by gains in Coca Cola bottler Andina.

Chile's blue-chip Ipsa index ended up 0.2 percent at 1,205.09 points, while the Inter-10 index of more liquid, internationally traded shares rose 0.3 percent to 117.58. Volume plunged to 9.92 billion pesos.

Top gainers included Andina, whose B-shares surged 4.2 percent to 979 pesos on speculation it might buy Peruvian peer Embonor.

Banco Santander Santiago rebounded from Monday's declines, rising 1.8 percent to 13.90 pesos.

Utilities holding Enersis headed the other way, giving up in profit-taking after a sharp rise Monday. It lost 0.5 percent to 63.30 pesos.

CARACAS, Venezuela (AP) -- Venezuelan shares ended higher Tuesday following a 10 percent jump in the market's biggest stock, CA Nacional Telefonos de Venezuela, whose investors resumed conversions to American Depositary Receipts Monday for the first time in almost four months.

The transfer agent for CANTV, as the company is known, suspended conversions after the government declared capital controls in February, awaiting clarification of the new rules.

The IBC General Stock Index, of which CANTV accounts for 40 percent, closed 6.5 percent higher at 11,105 points, the highest since September 1997.

Total trading was equivalent to about US$1 million, of which CANTV accounted for about 75 percent.