Light Trading in Brazil While Varig Learns Bankruptcy Is the Best Medicine

    Brazil’s stock market inched ahead, while Mexico receded. Investors are awaiting meaningful data from earnings season, which unofficially kicked-off with U.S.-based Alcoa’s financial release. Closer to home, Walmex posted results.

    Brazil’s Bovespa Index rose 38.66 points, or 0.11%. Mexico’s benchmark Bolsa receded 129.45 points, or 0.65%, while Argentina’s Merval Index slipped 0.98 points, or 0.06%.

    Brazilian issues inched forward Monday, July 10, alongside light trading volume. In local economic reports, a central bank survey revealed that economists expect the IPCA consumer price index to fall to 3.81% this year from a prior expectation for 3.98%.

    Elsewhere, the Trade and Development Ministry said that the country’s foreign trade surplus reached US$ 1.693 billion in the July 1 to 9 period, bringing the year-to-date figure to US$ 21.226 billion. In the year-earlier period, the trade surplus stood at US$ 20.034 billion.

    On the research front, a major investment bank reduced its price targets for American Depositary Receipts for telephone firms Telemar and Brasil Telecom. The news follows the firms’ recent rollback in rates.

    Within the airline group, Brazilian Airline Varig’s prospects dimmed on a report from Deloitte, the court-appointed restructuring administrators, that said liquidation is the preferable option for creditors rather than accepting a US$ 500 million offer from investment group Volo do Brasil.

    Mexican shares traded lower, as investors continued to ponder the outcome of the presidential election. Although Felipe Calderon won the election, rival Andrés Manuel Lopez Obrador is demanding a complete recount, and the Federal Electoral Tribunal has until the end of next month to access allegations of fraud. The tribunal will need to issue its final ruling on the election by September 6.

    In earnings headlines, Wal-Mart de Mexico posted a second quarter net profit of 2.67 billion pesos, compared to 2.01 billion pesos a year ago. Sales jumped 17% to 45.07 billion pesos, while operating profit surged 32% to 3.45 billion pesos. EBITDA, meanwhile, climbed 24% to 4.24 billion pesos.

    Argentine issues were little changed on the day, amid mixed trading elsewhere in Latin America. Investors are waiting for earnings season to get underway.

    Thomson Financial –


    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.


    You May Also Like

    Brazil’s Foreign Debt Falls 14% But It’s Still US$ 65 Billion

    Brazil’s foreign debt is down 14% since December, reports the National Treasury. That means ...

    Coping With Too Much Or Too Little Rain in Brazil

    More than 48,000 Brazilian family farmers and their families affected by the 2003/2004 drought ...

    Petrobras activities in Gulf of Mexico

    US and Argentina Get Lion Share of Brazilian Petrobras US$ 16 Bi Investment

    Petrobras, Brazil's state-controlled oil and gas multinational announced its international 2009/2013 investment plan totaling ...

    Canada Firm Bets on Brazilian Diamonds

    Canada-based Braz Diamond Mining Inc. now controls Brazil’s largest known diamondiferous kimberlite. The company ...

    Welcome to 1984, Brazilian Style

    Ricardo Bonalume Neto, one of the estimable science editors of the Folha de S. ...

    Doing business in Brazil

    Fine Points on How to Buy, Invest in or Join a Brazilian Firm

    My previous articles about doing business in Brazil focused on organizing a new company ...

    34% of Brazilian Indians Are in School

    The Secretariat of Ongoing Education, Literacy Training, and Diversity (Secad) of Brazil’s Ministry of ...

    New Republic Celebrates 20 in Brazil

    March 15 marked the 20th anniversary of the beginning of the country’s redemocratization, after ...