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EMERGING MARKETS-Brazil stocks hit record high on growing reform hopes
September 11, 2017 / 4:10 PM / 10 days ago

EMERGING MARKETS-Brazil stocks hit record high on growing reform hopes

    By Bruno Federowski
    SAO PAULO, Sept 11 (Reuters) - Brazilian stocks hit a record
high on Monday as investors grew more confident about the
passage of President Michel Temer's sweeping economic agenda,
including a challenging revamp of the country's social security
system.
    Billionaire Joesley Batista, an owner of JBS SA,
the world's largest meatpacker, surrendered to the police over
the weekend after losing immunity from prosecution under a
previous plea deal.
    Traders perceived the arrest as a boost to Temer, whom
Batista accused of taking bribes. The allegations forced him to
spend political capital in Congress fighting corruption charges
rather than pushing laws that investors consider key to Brazil's
long-term economic growth.
    A review of the "JBS plea deal will weaken the political
punch of accusations against Temer," analysts at political
consultancy Eurasia Group wrote in a report.
    Brazil's benchmark Bovespa stock index rose as much
as 1.9 percent to 74,472, surpassing a previous all-time high of
73,920. The index is up 23 percent so far this year.
    Blue-chip and state-owned companies led the rally. Shares of
state power utility Centrais Elétricas Brasileiras SA
, which Temer plans to privatize, posted the biggest
increase, extending its five-day gain to 20 percent.
    JBS shares were nearly flat after Batista's arrest and the
company's deal to sell British food unit Moy Park Ltd to
Pilgrim's Pride Corp, also a JBS subsidiary, for about
$1 billion.
    The Brazilian real strengthened 0.3 percent on a day
when trading of most Latin American currencies was range-bound.
    Concerns over an escalation of military tensions between the
United States and North Korea subsided on Monday after Pyongyang
did not conduct a nuclear test over the weekend.
    The United States and its allies had been bracing for
another long-range missile launch in time for the 69th
anniversary of North Korea's founding on Saturday. 
    
    Key Latin American stock indexes and currencies at 1500 GMT:
 Stock indexes                               daily %     YTD %
                                              change    change
                                  Latest              
 MSCI Emerging Markets              1098.78      0.7     26.55
 MSCI LatAm                         2982.69     1.38      25.7
 Brazil Bovespa                    74258.61     1.61     23.30
 Mexico S&P/BVM IPC                50335.03      0.5     10.28
 Chile IPSA                         5135.24     0.85     23.70
 Chile IGPA                        25679.58      0.8     23.85
 Argentina MerVal                  24118.40     0.42     42.56
 Colombia IGBC                     11243.38      0.3     11.01
                                                              
 Currencies                                  daily %     YTD %
                                              change    change
                                     Latest           
 Brazil real                         3.0829     0.31      5.39
 Mexico peso                        17.6555     0.34     17.49
                                                      
 Chile peso                           622.5    -0.55      7.74
 Colombia peso                      2913.29    -0.35      3.03
 Peru sol                             3.231     0.03      5.66
 Argentina peso (interbank)         17.2075    -0.01     -7.74
                                                      
 Argentina peso (parallel)            17.82     0.34     -5.61
                                                      
 
 (Reporting by Bruno Federowski; Editing by Lisa Von Ahn)
  

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