Brazilian stocks rise

19 May, 2013

Brazilian stocks rose on Friday after a pledge from the European Central Bank to support economic growth through loose monetary policy boosted shares of commodities exporters. Mexico's IPC index and Chile's bourse traded flat. The IPC ended the week up 0.16 percent while the IPSA closed down 1.41 percent over the same period.
Brazilian shares rose after ECB board member Joerg Asmussen told journalists on Friday that the bank's monetary policy would remain expansive for as long as needed. Stocks got a further boost from data showing consumer confidence in the United States rose in early May to the highest level in nearly six years. Brazil's benchmark Bovespa stock index rose for the third session in four, adding 0.72 percent to 55,164.27.
Broadly traded iron-ore producer Vale SA rose 0.71 percent, contributing most to the index's gains, while state-run oil company Petroleo Brasileiro SA, known as Petrobras, added 1 percent. Local stocks with high liquidity tend to attract foreign investors looking for exposure to Latin American equities, with their performance often tracking global risk appetite.
"Commodities firms are driving the market forward today, but it's important to remember we are in a very undefined period for the market right now, without a short-term trend in either direction," said Rudimar Joner Filho, a broker with Banrisul Corretora in Porto Alegre. Analysts said the index should remain volatile ahead of the expiration of options on shares, scheduled for Monday. Mexico's IPC index added 0.11 percent to 41,806.73. Lender Grupo Financiero Banorte gained 1.72 percent, contributing most to the index's rise, while retailer Wal-Mart de Mexico added 0.72 percent. Chile's IPSA index dipped 0.05 percent to 4,258.98 as shares of LATAM Airlines Group fell 1.82 percent.

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