Bloomberg News

Latin Day Ahead: Brazil Real Has ‘Clear Upside’, Putnam Says

October 01, 2009

Brazil’s real will rally for an eighth month as a surge in share sales led by Banco Santander SA’s local unit lures foreign investors. Vale SA said it will restart partial production today at Sudbury, its largest nickel unit in Canada, amid a strike. Chile’s gross domestic product will increase 5 percent next year, Finance Minister Andres Velasco said today. Brazil’s initial public offerings may double next year as the stock market extends its rally and growth accelerates. Goldman Sachs Group Inc. is hiring 11 bankers in Brazil to start a local private-banking operation and an asset- management business.

TOP STORIES; MOST READ ON BLOOMBERG

Brazil Real Has ‘Clear Upside’ as Share Sales Jump, Putnam Says

Brazil’s real, the world’s second-best performing currency this year, will rally for an eighth month as a surge in share sales led by Banco Santander SA’s local unit lures foreign investors, Putnam Investments said.

Vale Says Sudbury to Resume Nickel Production Today Amid Strike

Vale SA, the world’s second-biggest nickel producer, said it will restart partial production today at Sudbury, its largest nickel unit in Canada, amid a strike.

Chile’s Economy Recovering, to Grow 5% Next Year, Velasco Says

Chile’s gross domestic product will increase 5 percent next year, Finance Minister Andres Velasco said today as he announced his final budget ahead of elections in December.

Brazil IPOs to Double Next Year, Merrill Lynch’s Chatel Says

Brazil’s initial public offerings may double next year as the stock market extends its best rally in six years and growth in Latin America’s largest economy accelerates, according to Bank of America Corp.

Goldman Sachs Hires 11 Private Bankers, Fund Managers in Brazil

Goldman Sachs Group Inc. is hiring 11 bankers in Brazil to start a local private-banking operation and an asset-management business in Latin America’s largest economy.

MAIN COMPANIES:

Argentina

Petrobras Energia SA (PESA AF), Banco Patagonia SA (BPAT AF), Banco Hipotecario SA (BHIP) and Transener SA (TRAN AF): The four companies will be added to Argentina’s main equity index, the Merval, starting today, Merval wrote in an e-mailed statement. Petrobras Energia, a unit of Brazil’s state-run oil company, fell 3.1 percent to 6.93 pesos; Patagonia gained 6.5 percent to 2.8 pesos; Hipotecario was unchanged at 1.33 pesos; while Transener, which operates most of Argentina’s high-tension power lines, climbed 1.8 percent to 1.11 pesos.

Brazil

Marfrig Alimentos SA (MRFG3) (MRFG3 BS): The Brazilian meatpacker said it isn’t in talks and has reached no accord with Frigorifico Independencia. Agencia Estado reported today that Marfrig was in talks to buy Frigorifico Independencia, Marfrig said in a regulatory filing. Marfrig fell 3.2 percent to 16.85 pesos.

Chile

Salfacorp SA (SALFACOR) : The Santiago-based construction management and real-estate company will auction today 1 million UF, Chile’s inflation-indexed unit, or $37.9 million, in five- year bonds, according to a statement posted on the Santiago stock exchange’s Web site. Brokerage Larrain Vial will handle the sale. Salfacorp rose 0.5 percent to 893.29 pesos.

Soc. Quimica y Minera de Chile SA (SQM/B CC): The world’s largest lithium producer, known as Soquimich, will reduce lithium carbonate and lithium hydroxide prices by about 20 percent for new supply contracts to accelerate demand recovery, the Santiago-based company wrote in an e-mailed statement. Soc. Quimica y Minera slid 0.2 percent to 21,397 pesos.

Mexico

Empresas ICA SAB (ICA*) : Mexico’s largest construction company said in a statement it acquired the closely held Mexican builder Construcciones y Trituraciones SA for 300 million pesos. ICA fell 0.1 percent to 31.77 pesos.

LATIN AMERICAN MARKETS:

Brazil: Consumer prices rose 0.24 percent for the 30 days ending Sept. 30, from a 0.33 percent climb in the 30 days ending Sept. 22, according to the median estimate of 17 economists in a Bloomberg survey. The Getulio Vargas Foundation will release the report at 7 a.m. New York time.

The real rose 1 percent to 1.7711 per dollar.

The yield on the zero-coupon, real-denominated bond due in January 2010 rose one basis point to 8.69 percent, according to Bloomberg prices.

Other prices in Latin American markets:

Peru: The sol gained 0.2 percent to 2.8820 per dollar.

The yield on Peru’s 8.6 percent bond maturing August 2017 fell one basis point to 4.92 percent, according to Citigroup Inc.’s unit in Lima.

Argentina: The peso fell 0.1 percent to 3.8416 per dollar.

The yield on the country’s inflation-linked peso bonds due in December 2033 fell six basis points to 11.73 percent, according to Citigroup Inc.’s local unit.

Chile: The peso dropped 0.3 percent to 549.70 per dollar.

The yield for a basket of Chile’s 10-year peso bonds in inflation-linked currency units, called unidades de fomento, rose one basis point to 2.82 percent, according to Bloomberg composite prices.

Colombia: The peso gained 0.6 percent to 1,919.72 per dollar.

The yield on Colombia’s benchmark 11 percent bonds due July 2020 fell six basis points to 8.92 percent, according to Colombia’s stock exchange.

Mexico: The peso rose 0.3 percent to 13.4975 per dollar.

The yield on Mexico’s 10 percent bond due December 2024 was unchanged at 8.21 percent, according to Banco Santander SA.

ECONOMIES: Peru publishes its September consumer and wholesale price indexes; Brazil releases its September trade balance and its purchasing managers index; Venezuela announces its September consumer price index.

To contact the reporter on this story: Helder Marinho in Rio de Janeiro at hmarinho@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos in New York at papadopoulos@bloomberg.net


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