EMERGING MARKETS-Steelmakers, miner Vale boost Brazilian stocks

Reuters

MEXICO CITY, Dec 5 (Reuters) - Brazilian stocks rose for thefirst time in four days on Thursday, buoyed by steelmakers on areport they are seeking to hike prices, while miner Vale climbedafter announcing plans to sell a stake in its coal operations.

Brazil's Bovespa index rose 1.14 percent to50,787.63 points.

The country's steelmakers are proposing to boost steelprices by 7 to 10 percent for local automakers, a sourcefamiliar with the negotiations told Reuters.

Talks over what would be the first price rise in more thantwo years have been "very difficult" as automakers eye weakerdomestic sales, the source said on condition of anonymity,adding that talks are likely to continue into 2014.

Shares of Usinas Siderugicas de Minas Gerais SA,which makes flat steal for the auto industry, jumped 7.53percent, adding most to the index's gains, while steelmakerCompanhia Siderurgica Nacional SA rose 3.82 percent.

Shares of Vale gained 1.42 percent after theminer said it plans to sell a 15 to 25 percent stake in its coaloperations and has interest from potential partners includingcoal buyers.

Vale, the world's largest producer of iron ore, said ithopes the partnership in coal, along with the sale of a stake inits Mozambican rail link and in fertiliser assets, can bringfunding, cut capital commitment and help mitigate risk.

The Bovespa is still down more than 16 percent for the year,as concerns about the fiscal health and growth prospects ofLatin America's No. 1 economy weigh, fanning fears of asovereign ratings downgrade next year.

Mexico's IPC index lost 0.22 percent to 41,910.08points, dragged down by shares of telecoms giant America Movil and broadcaster Televisa.

The two companies said on Thursday they were under review bythe telecoms watchdog, which is determining whether they aredominant players in the sector, a tag that would open them up totougher regulation.

The telecoms watchdog, created by President Enrique PenaNieto's overhaul of the sector, has powers to break up telecomscompanies that are found to be impeding competition, althoughthose powers are only intended to be used as a last resort.

Shares of America Movil fell 1.69 percent and Televisa shed2.1 percent, contributing most to the index's losses.

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