* Chile's Cencosud jumps on Colombian store acquisition plan
* Mexico's IPC up 0.87 pct, Chile's IPSA down 0.3 pct
By Michael O'Boyle
MEXICO CITY, Nov 20 Mexican stocks rose on
Tuesday as optimism on fiscal negotiations in Washington drove
bets of solid demand in the United States, Mexico's top trading
partner, and buoyed shares with the most exposure to the U.S.
Mexico's IPC stock index rose 0.87 percent to 41,184
points after being closed on Monday for a holiday, catching up
to Wall Street's gains after U.S. lawmakers over the weekend
suggested they could reach a deal to stave off the looming
series of tax rises and spending cuts that are to begin to take
effect in the new year.
"They will reach a deal, and I like the market now," said
Gerardo Roman, head of trading at brokerage Actinver in Mexico
Mexican stocks rose for a second consecutive session after
reaching a more than six-week low last week.
Shares of conglomerate Alfa, which controls
auto-parts subsidiary Nemak, jumped 4.1 percent to hit a record
closing high. Mexican auto exports posted a record high in
Top U.S. cement supplier Cemex gained 4.34
percent, after the U.S. government reported that housing starts
hit a more than four-year high in October.
After being pushed to near bankruptcy by the U.S. housing
market collapse, Cemex is seen returning to profitability next
year, according to four of six analysts polled by Reuters.
Mexico sends nearly 80 percent of its exports to the United
States and could suffer the most among Latin America's economies
if a fiscal impasse were to slow U.S. growth.
But so far, stronger-than-expected U.S. demand has supported
Mexico in a wider global slowdown. The IPC is trading about 4
percent off its record high and has been the second
best-performing Latin American stock market behind Colombia in
Brazil, Latin America's biggest stock market, was closed for
a holiday. On Monday, Brazil's Bovespa index climbed
back above an important support at 56,200 that eroded last week
after the index shed more than 5 percent since Nov. 4.
If investors do not enter the market on strong volume and
drive a rebound, stocks may be headed back to this year's low,
nearly 8 percent down from current levels, chart watchers said.
Chilean stocks <.IPSA > slipped 0.27 percent on Tuesday as
energy firm Enersis fell 2.27 percent.
Shares in Chilean retailer Cencosud rose 2.09
percent after shareholders on Tuesday approved a $1.5 billion
capital increase destined for the purchase of French retailer
Carrefour's Colombian assets.
Latin American stock indexes at 2121 GMT
Stock indexes Daily Year-t
Latest change pct
MSCI LatAm 3,553.93 0.02 -1.36
Brazil Bovespa 56,450.86 Closed -0.53
Mexico IPC 41,184.00 0.87 11.08
Chile IPSA 4,179.70 -0.27 0.05
Chile IGPA 20,541.98 -0.23 2.05
Argentina MerVal 2,295.59 0.01 -6.78
Colombia IGBC 14,152.28 0.00 11.74
Peru IGRA 20,191.70 -0.57 3.69
Venezuela IBC 383,877.5 -0.02 228.00