EMERGING MARKETS-Mexican stocks rally on Greece bailout extension
RIO DE JANEIRO, Feb 20 (Reuters) - Mexican stocks gained late on Friday, with investor appetite for riskier assets boosted by news that euro zone finance ministers reached an agreement to extend financial aid to Greece for an additional four months. Other Latin American stock and currency markets closed before news of the Greek deal broke, ending lower as investors were mostly skeptical before the deal was confirmed. Mexico's IPC stock index gained 0.8 percent late on Friday as the agreement removed the immediate risk of Greece running out of money next month and possibly being forced out of the euro zone. Brazil's benchmark Bovespa index was already closed when news of the deal broke. The index ended 0.1 percent lower, a sign that investors were unconvinced that an agreement would be possible after a prolonged stand-off with Germany. "After so much drama, investors became more skeptical," Jaime Ferreira, head of currency trading at Sao Paulo brokerage Intercam, said before Greece's bailout extension. Weighing on the Bovespa index was a 3.5 percent drop in shares of TIM Participacoes, the country's second-largest mobile network operator. Telecom Italia, TIM's parent company, on Friday said it will spend billions of dollars in the next three years to upgrade its mobile network in Brazil. It also played down prospects of making new acquisitions. Shares of Brazil's state-run oil firm Petrobras also weighed on the Bovespa index as they closed 0.8 percent lower. Analysts are recommending investors avoid Petrobras stock as they are likely to keep suffering from the negative news related to an ongoing corruption investigation into the company. In an interview with Reuters, Moody's senior analyst Mauro Leos said Petrobras could cost the Brazilian Treasury as much as 5 percent of the country's gross domestic product, in case a bailout is needed. Key Latin American currencies and stock indexes at 2030 GMT Stock indexes daily % YTD % change change Latest MSCI Emerging 982.9 -0.22 3.01 Markets MSCI LatAm 2632.45 -0.24 -3.26 Brazil Bovespa 51237.7 -0.11 2.46 Mexico IPC 43561.43 0.76 0.96 Chile IPSA 3994.14 -0.05 3.72 Chile IGPA 19430.81 -0.06 2.97 Argentina MerVal 9436.739 0.51 10.00 Colombia IGBC 10499.56 -1.11 -9.76 Peru IGRA 13725.06 -0.99 -7.23 Venezuela IBC 3415.27 -2.53 -11.49 Currencies daily % YTD % change change Latest Brazil real 2.8773 -0.44 -7.64 Mexico peso 15.0167 -0.11 -1.82 Chile peso 615.5 0.32 -1.48 Colombia peso 2458.15 -0.58 -2.85 Peru sol 3.085 0.03 -3.44 Argentina peso 8.7000 -0.03 -1.72 (interbank) Argentina peso 13.02 -1.31 7.53 (parallel) (Reporting by Walter Brandimarte in Rio de Janeiro and Bruno Federowski in Sao Paulo; Editing by Chizu Nomiyama)
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