May 30, 2018 / 12:12 AM / 24 days ago

EMERGING MARKETS-Brazil stocks recover somewhat as traders hunt for bargains

 (Updates with final prices, Temer comment)
    SAO PAULO, May 29 (Reuters) - Brazilian equities rose almost
1 percent on Tuesday as traders searched for bargains after four
straight sessions in the red, but shares pared some of their
earlier gains as the day wore on.
    Brazil's benchmark Bovespa equities index had fallen
some 8 percent in the previous eight days and 4.5 percent on
Monday alone as an drawn-out truckers' strike hit the economy,
despite signs it was winding down.
    Among the hardest-hit stocks was state-run oil major
Petroleo Brasileiro SA, known as Petrobras, which
slumped nearly 15 percent on Monday as the government softened
the company's pricing policy in a bid to win over truckers
protesting high fuel prices.
    On Tuesday, traders saw opportunities across the board, with
multiple banks arguing that some stocks have attained attractive
valuations during the selloff, which as of Monday's close wiped
out the Bovespa's gains for the year.
    Analysts at Banco Santander Brasil SA flagged discount
retailer Lojas Americanas SA, energy company
Equatorial Energia SA, bank Itau Unibanco Holding SA
 and tire manufacturer Iochpe Maxion SA as
potential buys in a research note.
    Analysts at UBS AG said in a note some stocks in the
transport sector had seen "an exaggerated sell-off," pointing to
rental car company Localiza Rent A Car SA, airline
Azul SA, auto part maker Tupy SA as well as
Iochpe.
    The big index mover on the day was Petrobras, whose common
stock closed up by 12.4 percent.
    The Bovespa rose by almost 2.5 percent in morning trade, but
later pared some gains and closed up 0.95 percent.
    The real currency dipped 0.29 percent on Tuesday,
outperforming several other regional currencies as the dollar
strengthened. Traders described the political atmosphere as
somewhat calmer than in previous sessions, with those who had
been scooping up dollars shifting back into reais.
    Still, President Michel Temer told reporters in Sao Paulo
there was no chance the truckers' protest would spark a military
coup and topple his government.
    Among regional currency markets, Mexico's peso was
the biggest loser, falling 1.40 percent against the dollar, as
the renegotiation of the North American Free Trade Agreement
proceeds in fits and starts.
    
Key Latin American stock indexes and currencies at 0000 GMT:    
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1123.46     -1.19     -1.85
                                                  
 MSCI LatAm                    2551.46     -0.52     -9.31
                                                  
 Brazil Bovespa               76071.97      0.95     -0.43
                                                  
 Mexico IPC                   44647.37     -0.45     -9.54
                                                  
 Chile IPSA                    5494.51     -1.36     -1.26
                                                  
 Chile IGPA                   27830.22     -1.26     -0.54
                                                  
 Argentina MerVal             28389.22     -0.92     -5.58
                                                  
 Colombia IGBC                12205.72      1.51      7.34
                                                  
 Venezuela IBC                34695.33      6.73   2646.75
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.7392     -0.28    -11.39
                                                  
 Mexico peso                   19.8280     -1.40     -0.65
                                                  
 Chile peso                     629.80     -0.84     -2.41
                                                  
 Colombia peso                 2906.15     -0.93      2.61
 Peru sol                        3.276     -0.03     -1.19
                                                  
 Argentina peso                  24.84     -0.44    -25.12
 (interbank)                                      
                                                  
 Argentina peso                  25.80      0.00    -25.47
 (parallel)                                       
                                                  
 

 (Reporting by Gram Slattery; Additional reporting by Paula
Arend Laier; Editing by Meredith Mazzilli and Lisa Shumaker)
  
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