By Bruno Federowski
SAO PAULO, Feb 20 Brazilian stocks rose on
Monday after miner Vale SA unveiled a proposal to become a
company with no defined controlling shareholders.
Shares of Vale added the most points
to Brazil's benchmark Bovespa stock index, which rose
Shares in Bradespar, a key shareholder in holding
company Valepar SA, posted their biggest intraday jump ever,
adding as much as 20 percent.
Analysts said the accord increases the value of Bradespar's
net assets while freeing it up from having to make a large cash
payment for renewing the accord.
Other Latin American markets were little changed in thin
trading volumes amid a U.S. market holiday.
The Brazilian real strengthened 0.2 percent, while
the Mexican peso was flat.
Yields paid on Brazilian interest rate futures tightened
slightly as traders maintained bets that the central bank will
refrain from accelerating the pace of rate cuts at its meeting
Reuters calculations showed rate future yields indicated an
82 percent probability of a 75-basis-point cut in the benchmark
Selic overnight lending rate.
Weaker-than-expected inflation figures in recent weeks had
stirred some expectations of a steep 100-basis-point reduction.
Key Latin American stock indexes and currencies at 1610 GMT:
Stock indexes daily % YTD %
MSCI Emerging Markets 943.66 0.49 8.9
MSCI LatAm 2654.38 1.13 12.14
Brazil Bovespa 68352.42 0.89 13.49
Mexico IPC 47359.02 0.41 3.76
Chile IPSA 4358.88 0.2 5.00
Chile IGPA 21791.67 0.38 5.10
Argentina MerVal 19903.36 1.12 17.65
Colombia IGBC 9989.85 -0.21 -1.36
Venezuela IBC 34946.54 -0.25 10.22
Currencies daily % YTD %
Brazil real 3.0846 0.24 5.34
Mexico peso 20.4175 0.06 1.60
Chile peso 642.1 0.36 4.45
Colombia peso 2885.2 -0.01 4.03
Peru sol 3.251 0.37 5.01
Argentina peso (interbank) 15.6700 0.06 1.31
Argentina peso (parallel) 16.47 0.06 2.13
(Reporting by Bruno Federowski; Editing by James Dalgleish)