August 1, 2017 / 4:54 PM / a year ago

EMERGING MARKETS-Brazil stock market up as Itaú, Suzano shares jump

    By Bruno Federowski
    SAO PAULO, Aug 1 (Reuters) - Brazilian stocks rose on
Tuesday as a batch of corporate announcements lifted shares
including lender Itaú Unibanco SA and wood pulp producer Suzano
Papel e Celulose SA.
    Suzano was the biggest gainer on Brazil's
benchmark Bovespa stock index after its board approved a
proposal to list shares on the Novo Mercado segment of the São
Paulo Stock Exchange, which carries stricter corporate
governance standards.
    Analysts at Banco BTG Pactual said the move could trigger
gains of up to 20 percent in its share price, calling Suzano its
top pick among Brazilian pulp and paper firms.
    In early afternoon trade, Suzano stock was up 8.1 percent,
helping the Bovespa index rise 0.8 percent.
    Shares in Itaú Unibanco, Brazil's biggest bank,
rose 3.3 percent, propelled by stronger-than-expected
second-quarter net income and a drop in loan defaults.

    Gains on the index were limited, however, by falling prices
of commodities, which weighed on blue-chips such as
state-controlled oil firm Petróleo Brasileiro SA and
miner Vale SA. Currencies from commodity-heavy
economies, such as Chile and Mexico, also
    The Brazilian real was nearly flat as traders were
cautious ahead of a vote in the lower house of Congress on
whether to authorize the Supreme Court to put President Michel
Temer on trial for corruption charges. 
    "The market is pricing that Temer will conclude his term
and, of course, maintain the current economic Cabinet,"
Coinvalores brokerage head of stock trading Marco Tulli said.
Any outcome that differs from that scenario would drive share
prices sharply lower, he added.
   Traders widely expect the lower house to vote on Wednesday to
block the referral of the corruption accusations to the top
    Still, the prosecutor-general's office is likely to file
additional charges against the Brazilian leader in coming
months, potentially delaying a pension reform, which is seen as
needed to overcome the country's fiscal crisis. {nL1N1KI1Q9]
    Yields on Brazilian interest rate futures slipped as traders
increased bets on a sharp 100 basis point rate cut next month
following the release of the minutes of the last central bank
policy meeting.
    Key Latin American stock indexes and currencies at 1555 GMT:
 Stock indexes                                daily %    YTD %
                                     Latest    change   change
 MSCI Emerging Markets               1068.22     0.19    23.65
 MSCI LatAm                          2774.18     0.81    17.57
 Brazil Bovespa                     66346.48     0.65    10.16
 Mexico S&P/BVM IPC                 51300.59     0.57    12.40
 Chile IPSA                          5065.32     0.01    22.02
 Chile IGPA                         25312.69        0    22.08
 Argentina MerVal                   21634.00     0.24    27.88
 Colombia IGBC                      10941.72    -0.13     8.03
 Venezuela IBC                     140863.70     1.05   344.29
 Currencies                                   daily %    YTD %
                                               change   change
 Brazil real                          3.1168     0.03     4.25
 Mexico peso                         17.8200    -0.07    16.41
 Chile peso                           652.41    -0.52     2.80
 Colombia peso                       2974.49     0.32     0.91
 Peru sol                              3.239     0.03     5.40
 Argentina peso (interbank)          17.5950     0.30    -9.78
 Argentina peso (parallel)             17.98     0.61    -6.45
 (Reporting by Bruno Federowski; Editing by W Simon)
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