Brazil stocks touch new high. Tiger? No! Jaguatirica! images.google.com
Brazilian stocks touched a new high Wednesday on continued positive market sentiment about the country's economy and strong inflow of cash from foreign investors.
NEW YORK -- Brazilian stocks touched a new high Wednesday on continued positive market sentiment about the country's economy and strong inflow of cash from foreign investors.
The benchmark Ibovespa stock index rose 2.6% to 30837 points as investors continued to ignore a widening bribery and corruption scandal tainting the governing Workers' Party. Just before the market closed, Lower House speaker Severino Cavalcanti resigned amid allegations of receiving kickbacks from the operator of a congressional cafeteria concession.
Earlier in the day, Brazil's Central Bank said the country posted a current account surplus in its overseas accounts of $822 million in August. Although down from $1.75 billion for the same month a year ago, the figure still showed strength in country's economy.
Shares on the Bovespa were pulled higher by state-run oil company Petrobras SA (PBR: news, chart, profile) , which advanced 3.8% to 37.01 reals.
Mining giant Vale Do Rio Doce (RIO: news, chart, profile) , or CVRD, soared 4.7% to 83.26 reals.
Steelmakers Gerdau (GGB: news, chart, profile) and Usiminas also gained. While Gerdau gained 4.1% to 33.99 reals, Usiminas advanced 3.1% to 55.00 reals.
Fixed-line phone company Telemar (TNE: news, chart, profile) rose 2% to 35.05 reals.
Among utilities, Minas Gerais-based utility Cemig (CIG: news, chart, profile) rose 0.3% to 86.95 reals, while Sao Paulo utility CESP surged 3.9% to 13.30 reals.
Meanwhile, buoyed by the strength in metal and energy stocks, Toronto's key benchmark advanced despite weakness in New York markets.
The S&P/TSX Composite Index rose 0.5% to 10957.14. Overall, half of the TSX's 10 stock groups rose with the energy group and the materials gaining 1.3% each.
The energy sector's strength reflected concerns that Hurricane Rita is intensifying as it approaches the oil refineries in Texas.
In the group, EnCana, a big oil and gas producer, rose 2.60 Canadian dollars to C$65.10 and Imperial Oil, an intergrated energy company, finished up C$2.98 to C$134.00.
In the materials sector, gold stocks performed well as the price of bullion rose in New York trading in response to a weak U.S. dollar.
Among gold issues, Barrick Gold rose 75 cents to C$33.91, while rival Placer Dome gained 70 cents to C$19.90.
In the base-metal group, Inco, a big nickel producer, rose C$1.01 to C$51.89 and aluminum producer Alcan climbed 50 cents to C$38.47.
In the technology group, telecom-equipment vendor and group heavyweight Nortel Networks (NT: news, chart, profile) rose 5 cents to C$3.73 and Research in Motion (RIMM: news, chart, profile) , maker of the blackberry wireless device, gained C$1.18 to C$76.64.
In Mexico, a 3.7% gain in the Class L shares of wireless communications carrier America Movil SA (AMX: news, chart, profile) led stocks to yet another record high.
The market's key IPC index advanced 1.1% to 15734.41 as America Movil advanced to 13.63 pesos in heavy trading that represented over 20% of the session's activity.
In other sectors, CPOs of cement maker Cemex (CX: news, chart, profile) rose 1.9% to 55.98 pesos amid continued expectations that the company will benefit from rebuilding efforts in U.S. states hit by Hurricane Katrina.
Elsewhere, the Class V shares of retail leader Wal-Mart de Mexico continued to decline, losing 0.4% to 53.04 pesos after a 3.8% drop Tuesday.
|
