EMERGING MARKETS-Brazil stocks rise after Kroton says considering Estácio deal

jueves 2 de junio de 2016 11:57 GYT

By Bruno Federowski and Paula Arend Laier
    SAO PAULO, June 2 (Reuters) - Brazilian equities rose on
Thursday after Kroton Educacional SA said it was considering a
purchase of rival Estácio Participações SA, boosting shares of
both education companies.
    Kroton, the world's biggest private education
company, jumped by as much as 11.5 percent. Estácio 
shot up almost 20 percent, its biggest daily gain since October
    Kroton said in a securities filing it had hired Itaú BBA and
law firm Barbosa Müssnich Aragão to advise on the possible
all-stock deal. 
    Hopes that interim President Michel Temer could have an
easier time gathering lawmaker support than his predecessor
Dilma Rousseff also fostered appetite for Brazilian assets. 
    The lower house of Congress, in a first round vote on
Thursday, approved a constitutional amendment that would free up
about 120 billion reais in funds currently earmarked for special
    Backed by Temer's government, the lower house also
sanctioned pay raises for military and civil servants that will
cost about 4 billion reais ($1.1 billion) this year. 
    "This points in the opposite direction of fiscal austerity
but could also increase governability. In net terms, it might
not be so negative," said SLW brokerage trader João Paulo de
Gracia Corrêa.
    The loss of two ministers to a corruption scandal has not
set back Temer's plans to balance Brazil's government accounts
and return the country to growth, his chief of staff told
Reuters on Thursday. 
    Key Latin American stock indexes and currencies at 1550 GMT:
 Stock indexes                                 daily %   YTD %
                                     Latest     change  change
 MSCI Emerging Markets                809.03      0.22    1.65
 MSCI LatAm                          2055.24      0.52   11.74
 Brazil Bovespa                     49469.08      0.93   14.12
 Mexico IPC                         45665.57      0.24    6.25
 Chile IPSA                          3930.30      0.01    6.80
 Chile IGPA                         19365.67      0.01    6.69
 Argentina MerVal                   12579.19     -0.37    7.74
 Colombia IGBC                       9667.83      0.01   13.11
 Venezuela IBC                      15543.11     -0.08    6.55
 Currencies                                    daily %   YTD %
                                                change  change
 Brazil real                          3.5927     -0.17    9.86
 Mexico peso                         18.6015     -0.42   -7.37
 Chile peso                            691.4      0.06    2.65
 Colombia peso                       3112.21      0.03    1.83
 Peru sol                             3.3639      0.03    1.49
 Argentina peso (interbank)          13.9250      0.22   -6.77
 Argentina peso (parallel)             14.37      0.42   -0.70

 (Reporting by Bruno Federowski and Paula Arend Laier; Editing
by Dan Grebler)