February 20, 2017 / 10:48 PM / in 5 months

EMERGING MARKETS-Brazil stocks hit near 6-yr high on Vale shareholder proposal

5 Min Read

 (Updates prices)
    By Bruno Federowski
    SAO PAULO, Feb 20 (Reuters) - Brazilian stocks rose to a
nearly six-year high on Monday after miner Vale SA unveiled a
proposal to become a company with no defined controlling
shareholders.
    Shares of Vale, the world's largest
iron ore producer, gained nearly 7 percent, driving gains in
Brazil's benchmark Bovespa stock index, which rose 1.16
percent.
    Shares in Bradespar, a key shareholder in holding
company Valepar SA, posted their biggest intraday jump ever,
adding as much as 20 percent, but ended the day up 0.40 percent.
    Analysts said the Vale proposal would increase the value of
Bradespar's net assets.
    Other Latin American markets were little changed and trading
volume was thin due to the U.S. market holiday.
    The Brazilian real strengthened 0.14 percent, while
the Mexican peso gained about 0.3 percent.
    The peso did not move on news that Mexico's central bank
chief, Agustin Carstens, will remain in office until the end of
November amid uncertainty about the impact of U.S. President
Donald Trump's policies on Latin America's No. 2 economy.
    Mexican President Enrique Pena Nieto asked Carstens to stay
until Nov. 30, according to a presidential spokesman. Carstens
was set to step down at the end of June to take the top post at
the Bank for International Settlements in October.
    In Brazil, yields paid on 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
this week.
    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 2210 GMT:
    
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets            943.58      0.48      9.43
                                                    
 MSCI LatAm                      2654.43      1.13     13.41
                                                    
 Brazil Bovespa                 68532.86      1.16     13.79
                                                    
 Mexico IPC                     47083.81     -0.17      3.16
                                                    
 Chile IPSA                      4355.65      0.13      4.92
                                                    
 Chile IGPA                     21785.28      0.35      5.07
                                                    
 Argentina MerVal               20038.39      1.81     18.45
                                                    
 Colombia IGBC                  10003.13     -0.07     -1.23
                                                    
 Venezuela IBC                  34901.07     -0.38     10.08
                                                    
                                                            
 Currencies                                daily %     YTD %
                                            change    change
                                  Latest            
 Brazil real                      3.0860      0.01      5.29
                                                    
 Mexico peso                      20.359      0.35      1.79
                                                    
 Chile peso                          641      0.53      4.63
                                                    
 Colombia peso                    2880.6      0.15      4.20
 Peru sol                          3.246      0.52      5.18
                                                    
 Argentina peso (interbank)      15.6500      0.19      1.44
                                                    
 Argentina peso (parallel)         16.44      0.24      2.31
                                                    
 
 (Reporting by Bruno Federowski; Editing by James Dalgleish and
Tom Brown)
  

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