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Latin markets surge
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March 10, 1999: 4:56 p.m. ET
Stronger real pushes Brazil stocks up 3.1% as Telmex sends Mexico up 3.5%
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NEW YORK (CNNfn) - Optimism, bargain-hunting and an upward trend in equities opened investors' wallets in Latin America Wednesday. A brighter economic outlook coupled with a firmer Brazilian real and recovering oil prices were among the reasons the vast majority of bolsas posted big gains by day's end.
Recouping ground lost Tuesday, stocks in Brazil jumped 3.10 percent on a brighter economic outlook and a recovering real as investors picked up prime issues that were seen benefiting from a stronger local currency, traders said.
The Bovespa index of blue chips added 294 points to finish at 9,778 while the local real currency closed firmer by 1.1 percent at 1.87 against the U.S. dollar.
Traders said the central bank has been regularly selling small amounts of the U.S. currency to boost the real and did so again on Wednesday.
The Brazilian currency still has lost 35.3 percent of its value since massive capital outflows forced the central bank to shift its forex policy in mid-January.
Among equities, the electrical sector benefited from a stronger real, or a weaker dollar, which traders said eases their heavy dollar-denominated debt.
Mexican stocks led the region's percentage gainers, leaping 3.51 percent to its highest close in 10 months in a third day of strong advances fueled by optimism about the economy, recovering oil prices and big gains in market heavyweight Telefonos de Mexico (Telmex), dealers said.
The leading IPC share index ended trade up 160.17 points at 4,728.27 on moderately heavy volume.
Shares in Telmex, which represented 25 percent of the IPC's value on Wednesday, benefited from Tuesday's news that Mexico's telecommunications regulatory agency had authorized rate increases for phone service.
"Telmex shares here and in New York contributed to the big increase in the market," one analyst said.
At the close of trade in New York, Telmex ADRs (TMX) were up 3-1/2, or 5.65 percent, at 65-1/2.
Analysts said that recovering prices for oil, a major Mexican export, were also boosting optimism on the market. The average price for Mexico's crude mix on Wednesday was about $9.92 per barrel up from $7.90 last month.
Shares in Venezuela joined the regional upswing, rising 55.47 points, or 1.46 percent, to close at 3,844.42.
Most other bolsas enjoyed healthy gains as well. Stocks in Argentina leapt 3.19 percent to 403.560, while Peru's General Index rose 1.02 percent to 1,456.14 as the bolsa tracked the region and investors bought power and banking shares considered undervalued, brokers said. And stocks in Chile moved up 0.51 percent to 3,933.82.
Colombia proved the exception, however, with shares on the IBB index shedding 0.17 percent to finish at 920. 
-- from staff and wire reports
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