Mexican Stocks Favored Over Brazil on Manufacturing, SocGen Says
February 09, 2012, 3:39 AM ESTBy Ney Hayashi
Feb. 8 (Bloomberg) -- Societe Generale SA recommended that investors buy Mexican stocks to take advantage of rising exports and sell Brazilian equities on the potential for a drop in commodities prices.
“Given a much softer economy in Brazil and a potential commodity pull-back,” Mexico “may have more short-term upside,” Rebecca Cheong, an equity derivatives strategist at Societe Generale in New York, wrote in an e-mailed note today.
Mexican manufacturers will likely increase exports to the U.S. as rising labor and shipping costs in China hurt the Asian nation’s sales overseas, Cheong wrote.
Mexico’s IPC stock index has advanced 2.7 percent this year, while Brazil’s benchmark Bovespa has gained 16 percent.
--Editors: Richard Richtmyer, David Papadopoulos
To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net
To contact the editor responsible for this story: David Papadopoulos in New York at papadopoulos@bloomberg.net
