By Brittany Levine
Brazilian shares rose Friday, continuing their best week since
July, as energy and telecommunication companies boosted the
index.
The Bovespa gained 243 points, or 0.4% to 60,478.8. The index
has now added about 2% since last Friday. From July 10 through July
17, the index surged about 6%. On Wednesday, the index closed above
the 60,000 level for the first time since July 21, 2008.
Earlier in the week, Brazil's Central Bank President Henrique
Meirelles had encouraged businesses to invest, saying that the
economy must expand to protect against inflationary pressures.
Shares of steel maker Gerdau SA (GGB) rose 0.6%, while mining
giant Vale SA (RIO) added 0.4%.
Rob Lutts, chief investment officer at Cabot Money Management,
said he thinks the Bovespa is going to continue to grow, especially
the housing and real estate markets.
He pointed to Gafisa SA(GFA), a home builder that he thinks will
gain in the long term but may pull back in the next few months.
Gafisa's shares fell 0.1%.
"The emerging markets have led this worldwide rally, but some of
the leaders have taken back," Lutts said, referring to a dip in
Mexico's shares. "It's just adjusting to a little bit of a frothy
market."
Mexico's IPC fell 183 points, or 0.6%, to 29,833. On Thursday,
the IPC closed at 30,017.7, a 15-month high.
The Bank of Mexico announced that it would not change interest
rates, and the bank's president gave a positive outlook for
Mexico's economic future Friday morning.
As expected, the bank left its overnight rate unchanged at 4.5%
for a second straight month. It said it hopes the economy will
improve after a recent rough run resulting from the U.S. recession,
according to a statement on its Web site.
"The most recent indicators of industrial production, employment
and consumer confidence seem to indicate that the economy has hit
bottom and is beginning a phase of expansion," the bank said.
Among declining Mexican stocks were airport operators and
telecommunications providers.
Shares of Grupo Aeroportuario del Centro Norte fell 2.9%, Grupo
Aeroportuario del Sureste slid 1%, America Movil dropped 0.8% and
Telefonos de Mexico slipped 0.7%.
Argentina's Merval gained 0.09% to 2,019, and Chile's IPSA 0.7%
to 3,297.
On Wall Street, the S&P 500 Index (SPX) advanced 0.4% to
1,070 and the Dow Jones Industrial Average (DJI) rose 0.5% to
9,837.