Reuters logo
EMERGING MARKETS-Brazil stocks rise the most since August as Petrobras jumps
October 3, 2017 / 4:55 PM / 18 days ago

EMERGING MARKETS-Brazil stocks rise the most since August as Petrobras jumps

    By Bruno Federowski
    SAO PAULO, Oct 3 (Reuters) - Brazilian stocks rose on
Tuesday as shares of Petróleo Brasileiro SA rallied after a
cabinet minister raised the prospect of privatizing the
state-controlled oil company.
    Common shares of Petrobras, as the company is
known, rose 3.5 percent to a seven-month high after Brazil's
mines and energy minister said in an interview late on Monday
that a privatization would be feasible in the long run.

    His remarks added fuel to a controversy over state asset
sales in Brazil, a key part of President Michel Temer's efforts
to increase competitiveness and balance the government's budget.
    "It's a remote possibility, especially considering that
we're approaching presidential elections next year," strategists
at Coinvalores brokerage wrote in a client note.
    "Nevertheless, this should brighten the mood around
Petrobras shares, which currently seem too cheap."
    On Tuesday, Mines and Energy Minister Fernando Coelho Filho
said Temer is not planning on privatizing Petrobras, focusing
instead on an ongoing plan to sell off state control of power
utility Centrais Elétricas Brasileiras SA, or
Eletrobras.
    Preferred shares in Eletrobras were the biggest
gainers on Brazil's benchmark Bovespa stock index, which
headed for its best daily performance since late August.
    The Chilean peso led the gains among Latin American
currencies, tracking an increase in prices of copper, a key
export. Bargain-hunting propped up copper futures this month
after it fell nearly 5 percent in September.
    
    Key Latin American stock indexes and currencies at 1720 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
                                  Latest              
 MSCI Emerging Markets              1096.56     1.25     25.6
 MSCI LatAm                         2969.37     1.72    24.72
 Brazil Bovespa                    75696.02      1.8    25.68
 Mexico S&P/BVM IPC                50696.25     0.39    11.07
 Chile IPSA                         5415.47     0.82    30.45
 Chile IGPA                        27046.50     0.78    30.44
 Argentina MerVal                  26481.08     0.49    56.53
 Colombia IGBC                     11102.33        0     9.62
                                                             
 Currencies                                  daily %    YTD %
                                              change   change
                                     Latest           
 Brazil real                         3.1447     0.31     3.32
 Mexico peso                        18.2075     0.12    13.93
                                                      
 Chile peso                           632.6     0.92     6.02
 Colombia peso                       2950.3    -0.04     1.74
 Peru sol                             3.267     0.18     4.50
 Argentina peso (interbank)         17.4050     0.09    -8.79
                                                      
 Argentina peso (parallel)            17.88     0.45    -5.93
                                                      
 
 (Reporting by Bruno Federowski; Editing by Phil Berlowitz)
  

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below