On Monday, the stocks of Latin America increased on indications of a stronger market in Brazil and challenges that the market rich in resources will gain from the latest worldwide stimulus measures.
The Latin American MSCI stock index climbed up 0.14% as the Brazilian stocks edged back towards a 5-month high hit previously this month. A short period of profit-acquiring weighed on the stocks of the region previous week. The data proved that customer confidence increased for first in Brazil in the 4 months in September, where for July a main financial activity index increased maximum in fifteen months, backing challenges that a market slowdown in Brazil could have reached the bottom.
In Brazil, a financial slowdown weighed greatly on stocks in the top economy of Latin America during the 2nd quarter; however investor interest in the nation spiked off late and its key stock index has increased 10% after September 4th.
The head of research department at EPFR fund tracker, Cameron
Brandt said that there was a sway back to Brazil.
The stocks of Brazil declined from their peak since last week of May after moving on financial stimulus strategies revealed this month by European Central Bank and the Federal Reserve. Analysts told that the asset purchase program of Fed, called quantitative easing will persist to shove investors towards the riskier assets like commodities and stocks. The stock market of Brazil is dominated by the main producers of raw materials.
Brandt stated that the actuality that Brazil is a market rich in commodities at the time when quantitative easing is probable to bid the price of commodities higher is in its favor.
According to EPFR, the worldwide investors invested over $800 million in the stock funds focused on Brazil in the week that ended on September 19th, which is the greatest weekly flow-in since October 2010.
Brazil’s standard Bovespa stock index overturned premature losses in order to post its highest profit in over a week, increasing 0.96% to 61,909.99.
PDG Realty’s (a popular homebuilder) shares profited 1.49%, while that of its competitor Gafisa added 3.52%.
There was a gain seen in oil companies also, with the OGX of Eike Batista increasing 5.07% and that of its state-controlled competitor Petrobras added 1.15%.
The IPC index of Mexico climbed for the first session out of three by attaining 40,561.22, indicating an increase of 0.55%.
America Movil’s (telecommunications firm) shares increased 0.92%, while that of Grupo Mexico (copper miner) rose 1.28%.