beyondbrics

With US markets closed for Labor Day, Monday had all the makings of a slow session on Latin markets and it lived up to its promise. Volume on the equities section of the BM&FBovespa in São Paulo, at R$2.3bn ($1.3bn) was the lowest of the year and about a third of the recent average.

Most attention in São Paulo was on Petrobras. Its non-voting shares (the most traded) gained just over 1 per cent to close at R$29.09 while its voting shares were up 1.9 per cent to R$33.34. Investors have until Friday to position themselves to take part in the company’s share issue, set to be the biggest in corporate history and scheduled for the end of September.

Many investors have complained that the offer is likely to be priced too high and dilute them at the expense of the Brazilian government, Petrobras’s controlling shareholder. But trading tells a different story: investors have been dumping other assets (such as Vale, down 0.4 per cent today at R$42.55) to buy Petrobras and qualify to take part.

Mexico’s IPC gained 0.47 per cent to 32,746.71 adding to last week’s gains on fading fears of a double-dip recession.

Cemex, the cement company, was among the biggest gainers, up 3.45 per cent to 11.38 pesos on the day’s biggest volume. Telecoms companies also performed well, with Axtel up 5.89 per cent to 7.55 pesos and mobile operator América Móvil up 0.19 per cent to 32.05 pesos.

In Argentina, the Merval gained 0.61 per cent to 2,437.93 following last week’s gains.

In Chile, the IPSA gained 0.13 per cent to close at 4,634.10, also building on strong gains last week.

Equities
Brazil: Bovespa up 0.10% at 66,747
Mexico: IPC up 0.47% at 32,747
Chile: IPSA up 0.13% at 4,634

Currencies
Brazilian real at 1.73 (from 1.73) to the dollar
Mexican peso at 12.93 (from 12.92) to the dollar
Colombian peso at 1,803 (from 1,808) to the dollar
Chilean peso at 497.70 (from 495.70) to the dollar