EMERGING MARKETS-Brazil stocks rise as CPFL jumps in thin trade
By Bruno Federowski and Paula Arend Laier SAO PAULO, July 4 (Reuters) - Brazilian equities rose on Monday as shares of CPFL Energia SA jumped on news that the world's largest utility, China's State Grid International Development Ltd, will buy a controlling stake in the company for 5.85 billion reais ($1.8 billion). CPFL led the gains in Brazil's benchmark Bovespa stock index after Camargo Corrêa SA agreed to sell a 23 percent stake in the country's largest power distributor to the Chinese powerhouse. Credit Suisse analysts raised their price target for shares of CPFL to 25 reais from 18.54 reais and reiterated their "outperform" recommendation. In foreign exchange markets, the Brazilian real slipped as the central bank intervened for a second trading day to weaken the currency. Central bank chief Ilan Goldfajn said on Friday he saw a window of opportunity to reduce the bank's exposure to currency movements after the real posted its best monthly performance in 13 years in June. Trading volumes were thin all over the region due to the U.S. July Fourth public holiday, with the Mexican peso slightly lower as oil prices fell . Signs of slowing demand for crude in Asia offset comments by Saudi Energy Minister Khaled Al-Faleh, who said that the market was heading toward balance. Key Latin American stock indexes and currencies at 1600 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 843.91 0.56 5.68 MSCI LatAm 2295.37 0.48 24.85 Brazil Bovespa 52664.58 0.83 21.49 Mexico IPC 46406.39 0.42 7.98 Chile IPSA 4038.77 0.23 9.74 Chile IGPA 19914.26 0.2 9.71 Argentina MerVal 15315.86 1.35 31.18 Colombia IGBC 9768.57 0.06 14.29 Venezuela IBC 12507.11 -2.68 -14.27 Currencies daily % YTD % change change Latest Brazil real 3.2392 -0.24 21.85 Mexico peso 18.3750 -0.14 -6.23 Chile peso 657.4 0.58 7.96 Colombia peso 2931.91 0.00 8.10 Peru sol 3.284 0.06 3.96 Argentina peso (interbank) 15.0000 0.07 -13.45 Argentina peso (parallel) 15.04 -0.07 -5.12 (Reporting by Bruno Federowski and Paula Arend Laier; Writing by Bruno Federowski; Editing by Andrea Ricci)
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