Thursday, August 21, 2008

LATIN AMERICAN MARKETS: Commodity-price Surge Aids Brazil; Mexican Shares Struggle

By Carla Mozee

Brazilian shares gained ground Thursday, although advances in resource shares were met with some resistance throughout the market. Meanwhile, Mexican equities fell, with results from a key survey that showed the U.S. economy will see slow growth through the next year.

Brazil's Bovespa rose 0.5% to 55,558.06, with energy and steel stocks the only sectors to post gains. The benchmark index surged 3.2% on Wednesday.

Petroleo Brasileiro (PBR) was among the top percentage gainer, up 3.6% as oil briefly hit above $122 a barrel, its highest level in more than two weeks. Its preferred and common shares make up 17% of the index.

Crude prices were lifted by a decline in the dollar, and as tensions between the U.S. and Russia escalated after the U.S. agreed to construct a missile- defense system in Poland.

Steel stocks extended strong advances from the previous session, with Gerdau ( GGB) up 2.7%, CSN (SID) higher by 1.4%, and iron-ore giant Companhia Vale do Rio Doce (RIO) up 2.4%.

The Reuters/Jefferies CRB Index (CRB), a measure of major commodity futures, rose 3.4%.

No comments: