July 8, 2019 / 7:58 PM / 5 months ago

EMERGING MARKETS-Latam forex gains, Bovespa hits new high on pension reform prospects

 (Updates prices, adds quote)
    By Agamoni Ghosh
    July 8 (Reuters) - Latin American stocks rose on Monday led
by Brazil's Bovespa which scaled a record high on prospects that
the country's pension reform bill will pass in the House of
Representatives, while most currencies in the region gained
against the dollar.   
    MSCI's index of Latin American stocks rose
0.8%, outperforming the broader emerging markets index
on the back of gains among heavyweights Brazil and Mexico while
currencies gained 0.5%.
    The Bovespa touched a record high on optimism over
pension reform, while the real rose 0.4%. 
    Brazilian House speaker Rodrigo Maia said on Saturday he
expects the lower house of Congress to begin voting on the bill
on Tuesday. 
    Any Proposed Amendment to the Constitution (PEC) requires a
favorable vote of at least 308 of the 513 deputies and House
Minister Onyx Lorenzoni believes close to 330 votes are in favor
of the pension proposal.  
    A special committee in Congress had passed the basic text of
a bill that aims to generate savings of around 1 trillion reais
($264 billion) over 10 years, shore up public finances, and spur
investment and economic growth.
    "The big picture is that after last week's approval they are
fine tuning the bill and the expectations are constructive given
the moves in the assets prices. The overall sentiment seems to
be quite positive," said Mauricio Oreng, Senior Market
Strategist at Rabobank, Brazil. 
    In stocks, Brazilian airline Gol rose over 2%
after the carrier said it expects unit passenger revenue to
increase by 24% in the second quarter compared to the same
period last year. 
    Miner Vale rose 1.5% as Dalian iron ore recouped
some of its losses from late last week, buoyed by expectations
of strong demand.
    Mexican stocks and the peso strengthened 0.5%,
while Chile's peso fell 0.5% on the back of lower copper
prices, the country's main export.  
    Colombia's peso softened marginally while stocks
 rose 0.2%.   
  Markets in Argentina were shut for a public holiday on Monday
and Brazilian exchanges will be closed on Tuesday for a regional
holiday. 
    Latin American stock indexes and currencies at 19:45 GMT
       
 Stock indexes                        daily %
                             Latest    change
 MSCI Emerging Markets       1046.30    -1.29
                                      
 MSCI LatAm                  2931.93     0.76
                                      
 Brazil Bovespa            104454.76     0.35
                                      
 Mexico IPC                 43626.04     0.51
                                      
 Chile IPSA                  5063.08    -0.25
                                      
 Argentina MerVal                  -        -
                                      
 Colombia IGBC              12869.26     0.22
                                      
                                             
 Currencies                           daily %
                                       change
                              Latest  
 Brazil real                  3.8055     0.33
                                      
 Mexico peso                 18.9135     0.50
                                      
 Chile peso                    686.7    -0.49
                                      
 Colombia peso                3215.5    -0.26
 Peru sol                      3.285     0.15
                                      
 Argentina peso                    -        -
 (interbank)                          
                                      
 

 (Reporting by Agamoni Ghosh in Bengaluru
Editing by Susan Thomas)
  
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