 |
|
|
 Business News | April 2007 
Mexico Expects Economic Growth
 Associated Press
Mexico City – The Mexican Finance Ministry expects the economy to accelerate in 2008 after a slowdown this year, according to a preliminary outline of the 2008 budget sent to Congress.
The budget document estimates that gross domestic product will grow 3.9 percent in 2008, while Mexico’s crude oil exports will average $42.40 a barrel.
The numbers compare with the 2007 budget forecast of 3.6 percent in GDP growth and $42.80 a barrel for oil. GDP grew 4.8 percent in 2006.
Under a new budget law that went into effect last year, the government has to send to Congress by April an outline of the budget proposal it expects to submit in September for the following year.
The ministry said the higher growth outlook for 2008 is based in part on expectations of a recovery in the U.S., particularly in the industrial sector.
The ministry said it expects inflation in 2008 to meet the central bank’s 3 percent target, while foreign direct investment could exceed $17 billion and remittances from Mexicans living abroad could reach $28 billion).
Remittances were $23.1 billion last year and are projected to reach $25 billion in 2007.
Mexico's Bolsa Rises, Led by America Movil: Latin Stocks
William Freebairn & James Attwood - Bloomberg
Mexican stocks rose to a record for a second day, led by America Movil SAB after it offered to buy a stake in the company that controls Telecom Italia SpA.
The Bolsa index gained 423.83, or 1.5 percent, to 29,171.52. America Movil, Latin America's largest mobile-phone company, accounted for almost two thirds of the gain.
America Movil and Telefonos de Mexico SAB, or Telmex as Mexico's largest fixed-line telephone company is known, offered to buy one third of Olimpia, the company that controls Telecom Italia.
"It gives America Movil an important benefit in Brazil, where they could become the leading operator," said Rogelio Gallegos, who helps manage 2.7 billion pesos ($245 million) in equities at Actinver SA in Mexico City. "They have the largest weight in the index, and Telmex is also big," he said.
Shares of America Movil rose 4.4 percent, the most since October, to 27.61 pesos, a record. Telmex shares gained 38 centavos, or 2.1 percent, to 18.83 pesos.
Shares were also supported by falling corn prices, which eased concerns about accelerating inflation, Gallegos said. "As corn drops, it benefits interest rates in Mexico indirectly, by keeping inflation in check," he said.
The rise in corn prices to a 10-year high one month ago pushed up the price of tortillas, a staple of the Mexican diet. High tortilla prices contributed to a rise in inflation that was the fastest in four months in February, the central bank said last month. Inflation in the first half of March unexpectedly slowed.
Corn prices fell the most in seven months as U.S. farmers said they plan to sow the most acres in 63 years.
Colombia Shares Decline
Colombian stocks fell, led by steelmaker Acerias Paz del Rio SA, after higher-than-forecast inflation raised expectations of an increase in borrowing costs.
The country's IGBC index fell 1.3 percent to 10,548.17, its fourth straight loss after surging 8 percent from March 15 to March 27 on expectations that Paz del Rio's sale would spur more acquisitions by foreign companies.
The government reported yesterday that consumer prices rose 5.78 percent in the 12 months through March, a two-year high and more than the 5.35 percent median forecast in a Bloomberg survey.
"The market is quite wary after the report on the weekend," said Marcela Giraldo, head of equities research at Bogota-based brokerage Corredores Asociados.
The inflation number may mean the central bank will raise rates, which would increase the cost of capital for companies and may damp economic growth, she said.
Brazil's main stock index fell for the first day in three, led by Banco Bradesco SA, as investors sold stocks they considered to be too expensive.
The Bovespa Index of the most-traded stocks on the Sao Paulo exchange fell 207.18, or 0.5 percent, to 45,597.48.
"In the last days of the month - it being the end of the trimester - there was a surge of buying, with some shares ending up inflated at the end of the day," said Alexandre Vianna, who helps manage 170 million reais ($83 million) at Sul America Investimentos in Sao Paulo. "Now they're reversing that."
Banks Slide
The build-up to the initial share offering by Banco Pine SA also boosted demand for bank shares last week, Vianna said. Banco Pine's slide of 60 centavos, or 3.2 percent, to 18.60 reais on its first day of trading today helped bring down other bank shares, Vianna said. Banco Bradesco, Brazil's second- biggest non-state bank, fell 1.09 reais, or 2.6 percent, to 40.89 reais. Banco Itau, Brazil's biggest non-state bank, fell 1.28 reais, or 1.8 percent, to 70.60 reais.
In other Latin American markets, indexes in Chile and Peru rose, Venezuelan shares fell and Argentina's Merval index was little changed. The Morgan Stanley Capital International index of Latin American shares gained 0.4 percent to 3176.17.
The following were the most-active stocks in Latin American markets today. In Brazil, the preferred share is usually the company's most-traded class of stock.
Brazil
Embratel Participacoes SA (EBTP4 BS), Brazil's largest long-distance operator, rose 98 centavos, or 16.3 percent, to 7 reais after the company's controlling shareholder extended the deadline for three months to acquire shares it doesn't own in the company. Embratel is controlled by Telefonos de Mexico SA.
Gol Linhas Aereas Inteligentes SA (GOLL4 BS), Brazil's biggest airline by market value, fell 2 reais, or 3.2 percent, to 60.80 reais. An air traffic controllers' protest March 30 led the nation's aviation board to suspend takeoffs and landing at Brazilian airports, causing delays and cancellations of more than a third of flights when operations resumed during the weekend.
Tam SA (TAMM4 BS), Brazil's second-biggest airline by market value, fell 2.10 reais, or 3.8 percent, to 52.59 reais.
Tim Participacoes SA (TCSL4 BS), the Brazilian unit of Telecom Italia SpA, rose 40 centavos, or 6 percent, to 7.10 reais. AT&T Inc. and America Movil each offered to buy a third of the holding company that owns 18 percent of Telecom Italia. The move spurred speculation that Tim, Brazil's second-largest mobile phone operator by market share, and America Movil's Claro unit, Brazil's third-largest, would form a partnership and reduce competition, Ativa Corretora analyst Luciana Leocadio said.
Colombia
Acerias Paz del Rio SA (PAZRIO CB) fell 7 pesos, or 8.6 percent, to 74.50 pesos. Colombia's largest steelmaker has declined 21 percent in three days, spurred by Grupo Votorantim's comments last week that the Brazilian group wouldn't buy more shares in Paz del Rio after agreeing to acquire a 52 percent stake on March 16, said Giraldo at Corredores Asociados.
Mexico
Grupo Aeroportuario del Sureste SAB (ASURB MM), the operator of Mexican airports including Cancun, rose 95 centavos, or 1.8 percent, to 53.19 pesos. The company's chairman, Fernando Chico Pardo, said March 30 he wants to buy a controlling stake in the company for about $650 million. His offer of 56 pesos a share for about 43 percent of the company prompted UBS analysts including Tomas Lajous to upgrade shares to "buy" from "neutral." The offer indicates management's confidence in prospects for the company, and could lead to a leveraged buyout, they wrote in a research note.
Mexichem SA (MEXCHEM* MM), the Mexican chemical company that bought Petroquimica Colombiana last week, rose 1.67 pesos, or 5.8 percent, to a record 30.50 pesos. The company plans to issue $300 million in shares or convertible debt following an April 18 shareholders vote, Investor Relations Director Enrique Ortega Prieto said in an interview.
Peru
Cia. Minera Milpo SA (MILPOC1 PE), a Peruvian zinc and copper miner, rose 0.70 sol, or 5 percent, to 14.60 soles, its seventh straight day of gains. Before today, London Metal Exchange copper prices had gained 10 percent since mid-March on signs of rising Asian and European demand.
Cia. Minera Santa Luisa (SL PE), the zinc producer controlled by Tokyo-based Mitsui & Co., rose 30.50 soles, or 15 percent, to 236.50 soles, its biggest move in more than 10 months. In a March 30 meeting, Santa Luisa shareholders approved a plan to pay dividends equal to at least 10 percent of net income next year.
To contact the reporters on this story: William Freebairn in Mexico City wfreebairn@bloomberg.net - James Attwood in Santiago at jattwood3@bloomberg.net. |
| |
|
Vallarta Weddings
Tell a Friend
Site Map
Print this Page
Email Us