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EMERGING MARKETS-Brazil shares up as JBS jumps on appeals court ruling
July 13, 2017 / 5:39 PM / 5 months ago

EMERGING MARKETS-Brazil shares up as JBS jumps on appeals court ruling

    SAO PAULO, July 13 (Reuters) - Brazilian shares rose on
Thursday as JBS SA stocks jumped after the world's largest
meatpacker got permission from an appeals court to sell assets.
    JBS common shares rose as much as 9.7 percent to
7.24 reais, a one-month high, after Brazil's Regional Federal
Court of the 1st Region overturned a ruling blocking the $300
million sale of a South American unit to rival Minerva SA
.
    The ruling "sends a positive signal related to the company's
divestment plan," analysts at UBS Securities wrote in a note to
clients, referring to JBS's 6 billion reais ($1.9 billion)
asset-sale program.
    The transaction could help JBS's controlling shareholder J&F
Investimentos SA pay a massive leniency fine after becoming
embroiled in graft probes that have ensnared politicians and
executives.
    On Wednesday, J&F agreed to sell a controlling stake in
Havaianas flip-flop maker Alpargatas SA to the investment firms
of Brazil's most prominent banking families for 3.5 billion
reais. Preferred shares in Alpargatas rose 4.2
percent.
    Brazil's benchmark Bovespa stock index rose 0.5
percent, but the Brazilian real was nearly flat on
investor caution over the political environment.
    A congressional committee was set to vote on Thursday on
corruption charges against President Michel Temer after its
rapporteur recommended the body vote to put him on trial. 
    Some traders fear that could delay the implementation of his
agenda of structural reforms, which include revamps of the
country's pension system and labor laws. 
    Most other Latin American currencies strengthened after U.S.
Federal Reserve Chair Janet Yellen's dovish tone in testimony to
a Senate panel supported expectations of a slow pace of rate
hikes in coming months.
    The Mexican peso firmed 0.3 percent, its sixth
straight daily gain.
    
    Key Latin American stock indexes and currencies at 1710 GMT:
 Stock indexes                    Latest        Daily     YTD
                                                  pct     pct
                                               change  change
 MSCI Emerging Markets              1,040.50     1.03   19.44
 MSCI LatAm                         2,684.61     0.87    13.7
 Brazil Bovespa                    65,173.20     0.52    8.21
 Mexico S&P/BVM IPC                50,781.44    -0.06   11.26
 Chile IPSA                         4,969.31     0.25   19.70
 Chile IGPA                        24,796.32     0.25   19.59
 Argentina MerVal                  21,992.90    -1.06   30.00
 Colombia IGBC                     11,078.44    -0.39    9.38
 Venezuela IBC                    128,100.21     2.88  304.04
                                                             
 Currencies                           Latest    Daily     YTD
                                                  pct     pct
                                               change  change
 Brazil real                          3.2084    -0.05    1.27
 Mexico peso                         17.7275     0.26   17.02
 Chile peso                            660.5     0.36    1.54
 Colombia peso                      3,038.88     0.27   -1.23
 Peru sol                               3.25     0.03    5.05
 Argentina peso (interbank)          16.9600    -0.06   -6.40
                                                       
 Argentina peso (parallel)             17.53    -0.17   -4.05
                                                       
 
 (Reporting by Bruno Federowski; Editing by Chris Reese)
  

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