EMERGING MARKETS-Brazil markets gain after Petrobras earnings

jueves 23 de abril de 2015 12:27 GYT
 

By Walter Brandimarte
    RIO DE JANEIRO, April 23 (Reuters) - Brazil's financial markets gained on
Thursday after state-run oil firm Petroleo Brasileiro SA released its
long-delayed financial statements, raising hopes that it is leaving behind the
worst of a corruption scandal that has weighed on the Brazilian economy.
    Investor optimism was tempered by the realization that Petrobras, as the
company is known, still has a tough road ahead to increase oil production and
execute its investment plan, whose delay will further weigh on economic
activity.
    The oil firm took a $17 billion write-down to account to for corruption and
other losses, including poor planing and declining oil prices. Investors
considered the figure high enough to give credibility to its financial
statements, which were finally approved by independent auditors. 
    "The release could help build confidence in Brazil among foreign investors,"
said Frederico Mesnik, partner at investment firm Humaita in Sao Paulo.
"Considering that PriceWaterhouseCoopers signed off on these results, the market
perception is that there are no more surprises ahead."
    In a sign that Brazil's perceived risk among investors is declining,
five-year credit default swaps for the country tightened for a
fourth consecutive day to 225.68 basis points, after reaching a peak of 307
basis points on March 16.
    The Brazilian real gained 1 percent to 2.98 per dollar, on track to
close past the level of 3 per dollar for the first time since the beginning of
March.
    Brazil's benchmark Bovespa index rose 1.3 percent, supported by
shares of miner Vale SA, which rallied for a second day on the back
of rising iron ore prices .IO62-CNI=SI.
    Petrobras' common shares gained some 3 percent, but preferred
shares lost about 3.5 percent after chief executive Aldemir Bendine
said the company will not pay dividends for 2014. 
    Both share classes have rallied more than 50 percent since mid-March.
    
    Key Latin American stock indexes and currencies at 1615 GMT:
    
 Stock indexes                  daily %    YTD %
                                 change   change
                     Latest              
 MSCI Emerging         1054.91      0.7     9.55
 Markets                                 
 MSCI LatAm            2690.87     1.74    -3.04
                                         
 Brazil Bovespa       55311.94     1.27    10.61
                                         
 Mexico IPC           45297.97     0.15     4.99
                                         
 Chile IPSA            4054.26     0.44     5.28
                                         
 Chile IGPA           19650.35     0.39     4.13
                                         
 Argentina MerVal    11957.899     2.31    39.39
                                         
 Colombia IGBC        10434.32     0.73   -10.32
                                         
 Peru IGRA            13035.12     0.08   -11.89
                                         
 Venezuela IBC         5687.31    -0.04    47.39
                                         
                                                
 Currencies                     daily %    YTD %
                                 change   change
                        Latest           
 Brazil real            2.9757     1.05   -10.69
                                         
 Mexico peso            15.319     0.81    -3.75
                                         
 Chile peso              616.7     0.33    -1.67
                                         
 Colombia peso            2460     1.20    -2.93
                                         
 Peru sol                3.132    -0.03    -4.89
                                         
 Argentina peso         8.8825    -0.03    -3.74
 (interbank)                             
                                         
 Argentina peso           12.8    -0.08     9.37
 (parallel)                              
                                         
 
    

 (Additional reporting by Asher Levine in Sao Paulo, editing by Andrew Hay)