Latin America: the clouds are gathering behind falling oil prices

 

Tuesday, August 25, the major stock markets of Latin America completed the day in negative territory amid falling oil prices. In addition, the fuel to the fire podbavilo and a statement of the third-largest Brazilian steelmaker Siderurgica Nacio regarding the fact that steel production still exceeds demand.


As a result of trades

key index of Brazil Bovespa has decreased by 0.68% to 57,421.43 points. It should be noted that in general, the Brazilian stock market rose by 53% this year due to recovery in demand for raw materials. Mexican Bolsa remained stagnant, and Chilean Ipsa fell by 0,36%.

Shares of the company Gol Linhas Aereas Inteligentes fell 7.7% after the second-largest airline in Brazil announced its intention to draw 650 million reais ($ 355 million) through sales of shares around the world.

Papers steel companies were in a vulnerable position and lost in value amid fears that steel prices will not grow, even with the restoration of economic growth. For example, quotes CSN sank up to the auction by 1,7% after the CEO said that steel production still exceeds demand, as the Brazilian and the world market.


Petroleo Brasileiro

Shares dipped 0.5% due to the fact that the cost of crude oil fell more than $ 2 per barrel.

Papers

Brazilian construction company, Rossi fell in price by 5,8%, after consumer prices have risen more than analysts expected. Quotes retailer Lojas Renner dropped by 0,6%.

According to the statistical agency, consumer prices in Brazil rose by 0.23% for the period from mid-July to mid-August, while analysts predicted 0.19% increment of this index.

Itau Unibanco Holding shares went up by 1,3%, after Banco Santander analysts raised their recommendations on the securities in Brazil's biggest bank to hold, referring to the tendency to restore economic growth in the country. Quotations its rival Banco Bradesco also completed the day in positive territory at 0.8% due to increased recommendations on shares of the bank to buy.


Papers

Mexican developers have grown in price, after analysts said that, in 2010 in the construction sector will tend to increase. Quotes of the second-largest builder in Mexico Corporacion Geo soared 6.9%, while shares of its competitor Urbi Desarrollos Urbanos risen by 4%.


Paper

Mexican electronics retailer Grupo Elektra fell 8.3% after the regulators released pension funds from having to purchase securities of companies that are not actively traded on the stock markets. Yesterday, shares have fallen by 15%.

Index Country Closing Change (items) Change (%) Change YTD
MerVal Argentina 1779.8 -1.13 -0.06% 64.85 %
Bovespa Brazil 57421.43 -353.94 -0.61% 52.92%
IBC Venezuela 48948.28 642.94 1.33% 40.14%
IGBC Colombia 10756.85 -9.43 -0.09% 42.27%
Bolsa Mexico 28005.46 1.19 0.00% 25.13%
IGBVL Peru 14218.42 -56.48 -0.40% 101.72%
IGPA Chile 15426.66 43.06 0.28 % 36.23%
IPSA Chile 3255.8 11.61 0.36% 37.00%


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