By Carla Mozee
Most equity markets in Latin America rose Tuesday, with
post-holiday advances driven by home building issues and
commodity-related stocks as the U.S. dollar fell against its key
rivals.
Brazil's Bovespa rose to 0.6% to 64,481. The index has recently
been closing at its strongest levels since the middle of 2008.
Trading was closed Monday in observance of the Our Lady of
Aparecida bank holiday.
In Sao Paulo, home builder Gafisa (GFA) led price performers
with a rise of 6.7%. Shares of Rossi Residencial gained 3%.
Retailers were up 1.4% with shares of grocer CBD (CBD) rising
1.6% and Lojas Americanas advancing 2.1%.
The stock gains followed a weekly survey of analysts, conducted
by the Brazilian central bank, which showed that they have raised
their expectations for economic growth for this year and next year.
The consensus estimate for gross domestic product growth in 2009
rose to 0.1%, higher than the previous estimate of 0.01%.
For 2010, analysts expect growth of 4.8% compared with last
week's estimate of 4.5%, according to the survey published
Tuesday.
Most metals prices climbed as the dollar dropped against its
major competitors. Platinum and palladium shares hit their highest
levels in more than a year. The dollar index (DXY) -- a measure of
the dollar against a trade-weighted basket of currencies -- fell
0.3% to 75.90. Earlier in the session, it fell below 75 for its
weakest level in 14 months.
The index's level of 75.95 represents a "trapdoor, not a floor,"
wrote Richard Ross, global technical strategist at Auerbach
Grayson, in a report on Tuesday, adding that there's "no indication
that bearish momentum is ebbing."
The bulk of steel stocks in Brazil were higher, with MMX
Mineracao up 5.2%, CSN (SID) up 1.4% and Gerdau (GGB) higher by
2.9%. But shares of Vale (RIO) slipped 0.2%.
Brazilian state-run oil giant Petrobras (PBR) picked up 0.5% as
oil futures rose above $74 a barrel.
Tenaris 'buy' on nat gas
In Argentina, locally listed shares of Petrobras rose 1.3%.
Petrobras Energia (PZE) rose 2.3% and market heavyweight Tenaris
(TS) rose 1.2%.
UBS on Monday started coverage of Tenaris, which makes steel
tubes used by the oil and gas industry, with a buy rating.
"We believe that demand will pick up over the next 12 months,
due to higher U.S. natural gas prices, rising activity in Russia
and China, and the upgrading of the offshore fleet," wrote UBS
analyst Alex Brooks in a note to clients. "Tenaris has worldwide
exposure, especially to the early-cycle U.S. market."
The broker's price target on Tenaris' U.S.-listed shares is $42.
The shares recently traded up 0.5% at $38.18.
The Merval index rose 0.9% to 2,198, flirting with its first
close above the 2,200 points level since late May 2008. Trading in
Argentina was closed Monday for the Columbus Day holiday
Chile's IPSA rose 0.6% to 3,477. Investors on Wednesday will
receive the central bank's latest decision on its key interest
rate. Analysts polled by the central bank expect policymakers to
keep the rate unchanged at 0.5%.
Mexico's IPC index was last up 10 points to 30,484 following a
1.5% bounce higher in the previous session.