EMERGING MARKETS-Brazil stocks jump as traders see a bargain
SAO PAULO, May 29 (Reuters) - Brazilian equities bounced more than 2 percent on Tuesday, leading regional gains as traders searched for bargains after four straight sessions in the red, while the nation's real currency also outperformed other currencies in the region.
Brazil's benchmark Bovespa equities index had fallen some 8 percent over the previous eight days and plunged more than 4 percent on Monday alone as an eight-day trucker strike hit key sectors of the economy, even as there were signs it was winding down.
Among the hardest hit stocks was state-run oil major Petroleo Brasileiro SA, known as Petrobras, which slumped some 15 percent on Monday as the government softened the company's pricing policy in a bid to win over truckers protesting high fuel prices.
On Tuesday, traders saw opportunities across the board, with multiple banks arguing that some stocks have attained attractive valuations during the selloff, which as of Monday's close wiped out the Bovespa's gains for the year.
Analysts at Banco Santander Brasil SA flagged discount retailer Lojas Americanas SA, energy company Equatorial Energia SA, bank Itau Unibanco Holding SA and tire manufacturer Iochpe Maxion SA as potential buys in a research note.
Analysts at UBS AG said in a note that some stocks in the transport sector had seen "an exaggerated sell-off," pointing to rental car company Localiza Rent A Car SA, airline Azul SA, auto part maker Tupy SA as well as Iochpe.
The big index mover on the day was Petrobras, which jumped 8.1 percent by late morning.
The Bovespa was up 2.1 percent by mid-day, paring gains after rising almost 2.5 percent in morning trade.
The real currency was roughly flat on Tuesday, outperforming other regional currencies as the dollar strengthened. Traders described the political atmosphere as somewhat calmer than in previous sessions, with those who had been scooping up dollars shifting back into reais.
"The real has become untied to other currencies today, as the currency had a stressful day and now it's calmer," one trader told Reuters.
Among regional currency markets, Mexico's peso was the biggest loser, falling 0.95 percent against the dollar, as the re-negotiation of the North American Free Trade Agreement proceeds in fits and starts.
Key Latin American stock indexes and currencies at 1506 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1126.37 -0.93 -1.85 MSCI LatAm 2567.74 0.12 -9.31 Brazil Bovespa 76367.09 1.34 -0.05 Mexico IPC 44720.02 -0.29 -9.39 Chile IPSA 5545.93 -0.43 -0.34 Chile IGPA 28050.63 -0.48 0.25 Argentina MerVal 28874.40 0.77 -3.96 Colombia IGBC 12231.78 1.73 7.57 Venezuela IBC 32820.39 0.96 2498.32 Currencies daily % YTD % change change Latest Brazil real 3.7297 -0.07 -11.16 Mexico peso 19.7385 -0.95 -0.20 Chile peso 626.7 -0.35 -1.92 Colombia peso 2884.81 -0.37 3.37 Peru sol 3.279 -0.12 -1.28 Argentina peso 24.9125 -0.57 -25.34 (interbank) Argentina peso 25.95 -0.39 -25.90 (parallel) (Reporting by Gram Slattery; Additional reporting by Paula Arend Laier; Editing by Meredith Mazzilli)
