May 20, 2016 / 3:13 PM / 2 years ago

EMERGING MARKETS-Brazil stocks up as Parente named Petrobras CEO

By Bruno Federowski and Priscila Jordão
    SAO PAULO, May 20 (Reuters) - Brazilian equities rose on
Friday after the nomination of a well-known executive as head of
Petrobras allayed fears of political meddling at the embattled
state-controlled oil company.
    Brazil's interim president, Michel Temer, announced on
Thursday he will name Pedro Parente as chief executive officer
of Petróleo Brasileiro SA, as the company is formally
    He will be charged with helping the company out of its
current financial crisis, a result of low world oil prices,
crippling debt and a massive corruption scandal.
    "Parente has quality and experience both at the public
sector and the private sector. He is a good pick, but he will
face a steep challenge," Guide analysts wrote in a client note.
    Petrobras shares rose 2.7 percent, adding the most points to
the country's benchmark Bovespa stock index.
    Shares of Oi SA, which are not part of the
benchmark index, advanced 1.3 percent. Regulators forgave fines
owed by the telecommunications company as long as it agreed to
invest 3.2 billion reais ($900 million) in improving
    A recovery in global investor risk appetite also raised
demand for Latin American assets, with the Chilean peso 
following copper prices higher. 
    Still, most of the region's currencies looked set to end the
week lower as expectations grew of a U.S. interest rate increase
as soon as June. This could reduce the allure of high-yielding
assets, draining capital away from Latin American markets.

    Key Latin American stock indexes and currencies at 1505 GMT:
 Stock indexes                                daily %    YTD %
                                     Latest    change   change
 MSCI Emerging Markets                786.46     0.59    -1.55
 MSCI LatAm                          2096.27     1.75     12.6
 Brazil Bovespa                     50369.10     0.47    16.19
 Mexico IPC                         45201.39     0.33     5.17
 Chile IPSA                          3957.06     0.47     7.52
 Chile IGPA                         19471.26     0.43     7.27
 Argentina MerVal                   12774.64     1.17     9.42
 Colombia IGBC                       9836.38     0.22    15.08
 Venezuela IBC                      15357.33    -0.04     5.27
 Currencies                                   daily %    YTD %
                                               change   change
 Brazil real                          3.5410     0.78    11.47
 Mexico peso                         18.3970     0.15    -6.34
 Chile peso                            691.9     0.55     2.57
 Colombia peso                        3046.5     0.32     4.03
 Peru sol                             3.3329     0.27     2.43
 Argentina peso (interbank)          14.0950     0.04    -7.89
 Argentina peso (parallel)             14.64     0.48    -2.53

 (Writing by Bruno Federowski; Editing by Alistair Bell)
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below