June 20, 2016 / 3:42 PM / 2 years ago

EMERGING MARKETS-Latam stocks, currencies jump on reduced Brexit concerns

By Bruno Federowski
    SAO PAULO, June 20 (Reuters) - Latin American stocks and
currencies jumped for a second day on Monday after weekend polls
suggested the campaign for Britain to stay in the European Union
could be gaining momentum.
    Recent opinion polls have generally shown a tight race ahead
of the June 23 referendum, although betting markets have shown a
higher probability of a "Remain" vote.
    Three polls published on Saturday showed a small lead to the
"Remain" camp after a three-day hiatus in campaigning following
the killing of a pro-EU lawmaker. 
    "Market sentiment regarding the British referendum has taken
a positive turn over the last few days and the latest polls help
reaffirm this," B&T brokerage trader Marcos Trabbold said.
    Although trade ties between Britain and Latin America are
limited, analysts worry a "Leave" vote could sharply reduce
global demand for risk, weighing on assets from the region.
    In Brazil, shares of GPA SA jumped by the most in
 two months on local news reports saying its owner Casino
 could choose to delist Brazil's biggest retailer.
    Shares of Oi SA sunk by as much as 16 percent as
approaching deadlines for debt repayments added to fears of a
default or painful restructuring. 
    Gol Linhas Aéreas Inteligentes rose 2.3 percent
after the airline sweetened the terms of a bond swap offer and
extended its deadline to lure more investors. 
    Neither Oi nor Gol are part of the benchmark Bovespa stock
index, which rose 2.3 percent.
    Key Latin American stock indexes and currencies at 1525 GMT:
 Stock indexes                                daily %   YTD %
                                     Latest    change  change
 MSCI Emerging Markets                822.16     1.98    1.52
 MSCI LatAm                          2167.51     3.05   14.95
 Brazil Bovespa                     50669.76     2.29   16.89
 Mexico IPC                         45896.93      1.3    6.79
 Chile IPSA                          3998.27     0.54    8.64
 Chile IGPA                         19753.96     0.52    8.83
 Argentina MerVal                   13073.38    -0.32   11.98
 Colombia IGBC                       9864.21     0.99   15.41
 Venezuela IBC                      14035.17    -0.59   -3.79
 Currencies                                   daily %   YTD %
                                               change  change
 Brazil real                          3.3822     1.11   16.70
 Mexico peso                         18.6320     1.14   -7.52
 Chile peso                            680.2     0.53    4.34
 Colombia peso                       2970.57     1.21    6.69
 Peru sol                             3.2829     1.04    3.99
 Argentina peso (interbank)          13.9000    -1.10   -6.60
 Argentina peso (parallel)             14.37     0.63   -0.70

 (Reporting by Bruno Federowski; Additional reporting by
Priscila Jordão; Editing by Meredith Mazzilli)
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