Latin American Stock Roundup
Friday June 24, 6:12 pm ET
Stocks Fall in Mexico, Chile; Finish Up Slightly in Brazil, Argentina
MEXICO CITY (AP) -- Mexican stocks tipped lower Friday as investors sold off telecoms and other blue chips.
The market's key IPC index closed down 90.38 points or 0.7 percent to 13,299.28. Volume totaled 88.6 million shares traded worth 1.82 billion pesos.
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Fixed-line phone carrier Telmex's L shares retreated 0.4 percent to 9.96 pesos while those of wireless sister America Movil lost 0.3 percent to 31.56 pesos.
Conglomerate Alfa, which said Thursday it plans to shutter a polyester factory near its Monterrey headquarters, also slipped lower, with its A shares ending down 0.5 percent to 61.71 pesos.
Alfa plans to concentrate its production of the fiber in the United States, where energy costs are cheaper. The Mexican factory, which produces 55,000 tons of short polyester fiber a year and employs 150 people, will close July 31.
High energy costs are weighing on the minds of many market watchers as the second financial quarter comes to a close. The industrial sector has sought to hedge against high natural gas prices, but energy costs are still weighing on many companies.
Glass maker Vitro said recently it has had to raise some prices to compensate for the added production costs, but assured that it still expects to make its annual profit targets.
Vitro's A shares were among Friday's biggest losers, falling 5 percent to 7.47 pesos.
SAO PAULO, Brazil (AP) -- Brazilian stocks closed with slight gains Friday as the market awaited new developments in a government corruption scandal, on what was otherwise a quiet day.
The benchmark Ibovespa stock index advanced 0.4 percent to close at 24,916 points, breaking a four-day losing streak. Volume was lower than average, at just under 900 million Brazilian reals.
Analysts said the market lacked a clear trend Friday, dipping in and out of positive territory throughout the session.
"The lack of news made it difficult to pin down a trend in the market," said Fernando Viana, an analyst at the Theca CCTVM brokerage in Rio de Janiero. Viana added that Friday's low volume indicated many investors preferred to sit tight in the market rather than make any moves.
The market will be monitoring any weekend developments in an unfolding government bribery scandal, fearing fresh allegations may further damage members of the governing Worker's Party, including President Luiz Inacio Lula da Silva.
Friday, Congress took a break from its investigation into the case, which has dominated local headlines for over two weeks.
BUENOS AIRES, Argentina (AP) -- Argentine stocks were virtually unchanged Friday, stabilizing in low volume after the previous session's losses.
The benchmark Merval Index closed up a thin 0.35 percent, or 5.18 points, at 1,444.61. The broader General Index ended down 0.05 percent, or 34.07 points, at 61,195.11. Volume fell back from Thursday, totaling 67.7 million pesos.
Analysts are noting much more interest in the local fixed-income market in recent weeks, with trading volumes in the peso-denominated discount bond alone surpassing total turnover in the stock market. The diminished activity in stocks has left the Merval trading in a range between about 1,410 and 1,460 points.
"This is a trajectory we've been following in the last few weeks, while we don't have stronger news" to move markets, said analyst Ruben Pascuali of Mayoral Bursatil brokerage.
One of the key issues for investors in the coming weeks will be restarted talks with the International Monetary Fund over Argentina's suspended financial program. In the meantime, local stocks will take their cue from regional and international markets. The Merval had tumbled 1.7% Thursday amid weakness in the U.S. and elsewhere.
SANTIAGO, Chile (AP) -- Chilean shares ended slightly lower Friday, on slides in select stocks, traders said.
The 40-share, blue-chip Ipsa index lost 0.2 percent to close at 2,064.68 points. Volume tapered off to 36.34 billion pesos.
Power producer Endesa extended its slide from the previous session, falling 0.8 percent to close at 484 pesos. Its parent company Enersis gave up 0.4 percent to 121 pesos.
Lan Airlines lost 1.7 percent to 4,180 pesos on jitters over crude oil flirting with US$60 a barrel, traders said.
Other decliners included integrated steel manufacturer Cap, off 2 percent to 6,670 pesos and fertilizer and specialty chemical producer SQM, down 0.4 percent to 5,875 pesos.
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