EMERGING MARKETS-Peru sol posts biggest daily gain in 20 years; Brazil real jumps
By Bruno Federowski SAO PAULO, April 11 (Reuters) - The Peruvian sol posted its biggest daily gain in two decades on Monday after the defeat of a leftist presidential candidate dashed fears of a retreat from the free-market policies that have governed the nation for a quarter century. The country's select stock index jumped 8.4 percent, its best performance since 2008. Peru's stocks and currency had suffered in the run-up to the election as leftist Veronika Mendoza's rise in opinion polls sparked calls of economic populism. Conservative Keiko Fujimori will face off with investor darling Pedro Pablo Kuczynski, which should yield few surprises in terms of economic policy. "(The runoff) is widely regarded as the market's preferred outcome, with both candidates pledging to maintain pro-business policies, unlike Mendoza, whose populist rhetoric and recent surge in the polls had generated market anxiety," J.P. Morgan economist Franco Uccelli wrote in a client note. U.S.-traded shares of Credicorp, Peru's biggest financial holding company, shot up 10.6 percent, its biggest one-day advance in almost ten years. Precious metals miner Buenaventura rose 6.4 percent after jumping by as much as 12.4 percent earlier in the day to a new nine-year high. Meanwhile, the Brazilian real extended a rally for a second day, hitting an eight-month peak before a congressional committee was set to vote on President Dilma Rousseff's impeachment after markets close. A majority decision for the leftist president's ouster would pave the way for a vote on the House floor as soon as this week. Local media polls have generally shown increasing lawmaker support for impeachment, boosting the country's stocks and currency. Many traders believe a change in government would lay the groundwork for an investment recovery in the recession-mired economy. "This week carries a promise of high stakes," said Ricardo Gomes da Silva, a trader at the Correparti brokerage. Stocks whose performances have been tied to political developments rose but shares of export-oriented companies such as planemaker Embraer and meatpacker JBS SA fell on the back of a stronger local currency. BM&FBovespa SA retreated 1.2 percent after it agreed to buy rival Cetip SA Mercados Organizados, creating Latin America's largest bourse with a market value of almost 12 billion reais ($3.4 billion). Deutsche Bank Securities analyst Tito Labarta lowered his recommendation on BM&FBovespa shares to "hold," saying the stock's recent rally limited the space for gains. Key Latin American stock indexes and currencies at 1910: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 825.75 1.09 2.86 MSCI LatAm 2150.37 2.42 14.74 Brazil Bovespa 50379.04 0.17 16.21 Mexico IPC 44881.63 0.05 4.43 Chile IPSA 3928.52 0.04 6.75 Chile IGPA 19261.51 0.03 6.12 Argentina MerVal 12252.02 0.24 4.94 Colombia IGBC 9866.08 0.65 15.43 Venezuela IBC 15196.07 -0.04 4.17 Currencies daily % YTD % change change Latest Brazil real 3.5015 2.67 12.72 Mexico peso 17.6220 0.90 -2.22 Chile peso 679.5 0.49 4.44 Colombia peso 3053.4 1.34 3.80 Peru sol 3.28 2.69 4.09 Argentina peso (interbank) 14.5200 -0.21 -10.59 Argentina peso (parallel) 14.91 0.00 -4.29 (Additional reporting by Paula Arend Laier; Editing by Daniel Flynn, Meredith Mazzilli and Jeffrey Benkoe)
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