MEXICO CITY: Brazilian stocks rose on Monday, rebounding from a six-week low, as a weaker local currency lifted the prospect of higher export income at companies such as iron ore miner Vale, while Mexican stocks fell from a two-week high.
Stocks have suffered this year in Latin America's top two economies. In Brazil, investors are concerned the central bank will continue to raise interest rates to fight inflation even as growth remains sluggish.
In Mexico, stocks have slumped back from a record high hit in January, hurt by slower-than-expected growth and weak first-quarter earnings. The country's IPC index bounced back from a nearly eight-month low last month.
Brazil's benchmark Bovespa stock index rose 0.82 percent after hitting its lowest close on Friday since April 18. Brazil's currency, the real, strengthened slightly on Monday after closing Friday's session at a four-year low against the US dollar.
Vale SA rose 4.54 percent, after a three-day decline took the stock to its lowest since October 2009. A weaker real is positive for Vale because about 90 percent of its revenues are tied to exports.
Shares of airline Gol Linhas Aereas Inteligentes SA fell 3.87 percent. The stock has shed more than 17 percent in the last three sessions, hit by concerns the weaker real will make dollar-denominated fuel more expensive.
Mexico's IPC index shed 1.19 percent as shares of telecommunications firm America Movil, controlled by billionaire Carlos Slim, lost 2.26 percent.
Chile's IPSA index fell after posting its biggest daily gain of the year on Friday, with shares of retailer Falabella dropping 3.14 percent.
<Center><b><i>Copyright Reuters, 2013</b></i><br></center>
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