June 30 (Bloomberg) -- Colombia's stock index rose to a record for a second day, led by insurance company Suramericana de Inversiones SA, after the government said gross domestic product grew faster than economists estimated in the first quarter.

Colombia's IGBC index rose 70.66, or 1.3 percent, to 5563.57, the highest since the nation's three exchanges were unified in July 2001.

``The GDP figure beat market expectations and that drove strong performance in the stock market,'' said Fernando Castro, an analyst at Helm securities in Bogota.

Colombia's government yesterday said GDP expanded 3.61 percent in the quarter, exceeding the 3.55 percent median estimate in a Bloomberg survey of 22 economists. The economy has grown at the fastest pace in a decade for the past two years, as improved security spurred investment. President Alvaro Uribe's crackdown on a rebel insurgency led to a 50 percent decline in kidnappings since August 2001, when he took office.

Elsewhere in Latin America, Brazil's Bovespa fell 75.15, or 0.3 percent, to 25051.21. Mexico's Bolsa fell 64.01, or 0.5 percent, to 13,486.13. The main index in Argentina fell, while those in Peru, Chile and Venezuela were little changed. Morgan Stanley's index of Latin American stocks fell 0.3 percent to 1624.89.

The following stocks are making significant gains or losses in Latin American markets today. Symbols are in parentheses after the company name. In Brazil, the preferred share is usually the company's most-traded class of stock.

Colombia

Suramericana de Inversiones (SURAMIN CB), Colombia's largest insurance holding company, rose 200 pesos, or 1.9 percent, to 10.700 pesos. Suramericana, part of the Antioquian Business Group, holds investments in banks including Bancolombia SA and Conavi SA.

``Suramericana is interesting for investors because of the good results expected in the financial sector in the second quarter,'' Castro said.

Inveralimenticias Noel SA (NOEL CB), the country's largest food processor, rose 3,840 pesos, or 17 percent, to 26,500 pesos. Inversiones Nacional de Chocolates, Colombia's biggest food holding, will merge with Noel. Both companies are part of the Antioquian Business Group.

``Investors are betting Noel's merger with Chocolates will increase its value,'' Castro said.

Mexico

Grupo Mexico SA (GMEXICOB MM), the world's third-largest copper producer, fell 41 centavos, 2.3 percent, to 17.56 pesos. Workers at the company's Ray, Arizona, copper mine authorized a strike in the event talks break down to renew a three-year labor contract that expires on July 1.

Fomento Economico Mexicano SA (FEMSAUBD MM), Latin America's largest beverage company, rose 49 centavos, or 0.8 percent, to 64.13 pesos. The company acquired a small brewer in Mexico that makes a premium beer called Casta and plans to increase the brand's distribution, the Monterrey daily El Norte reported yesterday. Femsa's shares have risen 9.6 percent this year, outpacing the bolsa index's 5 percent gain.

Brazil

Cia. Siderurgica Nacional (CSNA3 BS), the country's second largest steelmaker, fell 1 real, or 2.6 percent, to 37.9 reais. The stock has fallen 40 percent this quarter, the worst performance among Bovespa's 55 members, on concern that profit may fall following a drop in steel prices. Benchmark steel prices in Latin America are down 26 percent this year.

Usinas Siderurgicas de Minas Gerais (USIM5 BS), or Usiminas, Latin America's largest producer of flat steel, fell 1 real, or 2.6 percent, to 38.1 reais, making a 34 percent drop in the quarter, the third-biggest drop on the Bovespa.

Eletropaulo Metropolitana SA (ELPL4 BS), Brazil's biggest power distributor, surged 7.69 reais, or 9.2 percent, to 91 reais, the biggest increase on the Bovespa. The stock gained on speculation the utility will sell its fiber optic network to a telephone company, said Pedro Batista a power utility analyst at Banco Pactual SA.

Shares in Eletropaulo are also rising because of a decision by the country's electricity regulator today to grant the utility an average rate increase of 2.25 percent this year, Batista said in a telephone interview from Rio de Janeiro.

Uniao de Bancos Brasileiros SA (UBBR11 BS), or Unibanco, Brazil's third-biggest non-state bank, rose 15 centavos, or 0.8 percent, to 18 reais. Jorge Kuri, an analyst with Morgan Stanley & Co., increased his 12-month forecast the Unibanco shares traded in the U.S. to $44 from $40. The change came due to a higher forecast for yearend benchmark lending rate of 16.5 percent, from 15 percent previously estimated. Higher interest rates will be translated into higher margins for banks, Kuri wrote in a report today.

To contact the reporter on this story: Andrea Jaramillo in Bogota at ext 230 or ajaramillo1@bloomberg.net

Last Updated: June 30, 2005 17:09 EDT