By Carla Mozee
Major equity markets in Latin America moved higher Friday,
lifted by a jump in commodity prices and a climb in stocks on Wall
Street from session lows.
Brazil's Bovespa rose 0.6% to 38,132.35 and Mexico's IPC rose
0.2% to 19,348.81. Argentina's Merval, which is heavily weighted by
oil stocks, gained 0.8% to 1,065.31. Chile's IPSA picked up 1 point
to 2,494.93.
On Wall Street, the S&P 500 (SPX) ran from deeper losses,
aided by an improvement in financial shares.
In Sao Paulo, voting shares of TIM Participacoes (TSU) soared
30% to 29.94 reals ($12.87), its highest-ever percentage gain,
after Brazil's telecommunications regulator ruled late Thursday
that its controlling owners must issue a buyout offer to the TIM's
minority shareholders.
The ruling applies to the Telco consortium, which includes
Spain's Telefonica (TEF) and a group of Italian banks. The
consortium controls Italy's Telecom Italia (TI), which holds 81.2%
of TIM's voting shares. Preferred, or non-voting, shares of TIM,
which are more actively traded, rose 2.8%.
Although Brazil's telecom regulator "has required the tender
offer, it has not signaled any price, which should open a loophole
for Telco to pay a small or even no premium," wrote Bradesco in a
research report Friday. It also cut its rating on Brazil's
third-largest wireless company to market perform to outperform
because of a recent share-price rally.
Shares of rival wireless provider Vivo Participacoes (VIV) fell
2.4%.
Shares of oil giant Petrobras (PBR) lost grip of earlier gains
to finish down 0.2%.
Morgan Stanley cut Petrobras' rating to equalweight from
overweight, citing high valuation amid lower prices for crude oil
and a weaker local currency. The price target on U.S.-listed shares
(PBR) of Petrobras was also cut, to $25 from $46.
For its part, Citigroup said while it remains positive on the
outlook for Petrobras, its shares' short-term performance "is
strongly linked to oil prices and a negative strategic plan...could
have a negative impact on the shares." Petrobras is scheduled to
unveil its 2009-2013 strategic plan on Monday.
Crude-oil prices managed to find higher ground Friday, rallying
6.4% to $46.47 a barrel on the New York Mercantile Exchange. Crude
futures finished the week with a 9% increase.
Citigroup analyst Tereza Mello also on Friday said oil refiner
Ultrapar Participacoes (UGP) and sugar-based ethanol producer Cosan
(CZZ) were the broker's preferred energy sector stocks. Ultrapar
shares rose 0.2% and Cosan climbed 2.6%.
Oil futures were part of a broader rally in commodity prices on
Friday, pulling the Russell/Jefferies CRB Index (CRB) up 3.3%.
March silver futures rose 5% to $11.94 an ounce, and copper futures
rose 7 cents to $1.47 a pound.
Buenos Aires-listed shares of Petrobras rose 1.3% and shares of
steel tube maker Tenaris (TS) rose 1.7%.
In Mexico City, shares of manufacturers, miners, and engineering
and communication stocks contributed to the market's advance.
Shares of steel maker Grupo Simec (SIM) led IPC advancers with a
gain of 5.7%.
America Movil (AMX) rose 0.9%, but retailer Walmex (WMMVY) fell
1.8%.
Friday's regional advancers weren't enough to save the
benchmarks from logging weekly losses. The Bovespa fell 3.1% and
the IPC fell 4.8%. The Merval lost 2.9% and the IPSA slipped
0.2%.
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