Latin Day Ahead: Peruvian Stocks Go to 1st From Worst on Metals

Peru’s stock market is the biggest gainer in 2009 after a rebound in raw-material prices; Emerging- market bonds gained, poised for the biggest quarterly rally in four years; Telefonos de Mexico SAB was upgraded by Credit Suisse Group because of the shares’ underperformance this year; The World Bank and OECD cut their economic outlooks for emerging and rich nations.

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Peruvian Stocks Go to First From Worst on Copper, Zinc, Gold

Peru’s stock market, Latin America’s worst performer last year, is the biggest gainer in 2009 as a rebound in raw-material prices helps send the economy to the fastest growth rate in the region.

Emerging-Market Bonds Gain, Head for Best Quarter Since 2005

Emerging-market bonds gained, poised for the biggest quarterly rally in four years, after more aid was pledged to eastern Europe and oil climbed on speculation U.S. stimulus measures may help boost economic growth.

Carlos Slim’s Telmex Upgraded at Credit Suisse After Slump

Telefonos de Mexico SAB, the country’s largest fixed-line phone company, was upgraded by Credit Suisse Group because of the shares’ underperformance this year.

World Bank, OECD Cut Economic Forecasts, Warn of Jobless Jump

The World Bank and OECD cut their economic outlooks for emerging and rich nations and warned surging unemployment may deal another blow to the global economy.

MAIN COMPANIES:

Brazil

Cia. Siderurgica Nacional SA (CSNA3 BS): Brazil’s third- biggest steelmaker said it’s “revising” new steel projects that have a “longer payback” because of the economic slump. The projects aren’t being canceled, CSN Chief Financial Officer Otavio Lazcano told analysts yesterday on a conference call. CSN fell 2.8 percent to 33.51 reais.

Minerva SA (BEEF3 BS): Brazil’s third-largest exporter of fresh beef had its local currency issuer default rating placed on rating watch negative by Fitch Ratings. Minerva was unchanged at 1.67 reais.

Chile

Banco de Chile (CHILE CC): The country’s second-biggest lender was reiterated “buy” at Celfin Capital after regulators released data showing a 14 percent increase in the bank’s loans in February from a year earlier. Banco de Chile (CHILE) fell 1.1 percent to 34.01 pesos.

Mexico

Controladora Comercial Mexicana SAB (COMERUBC) : The Mexican retailer that defaulted on debts in October posted a net loss of 4.3 billion pesos ($301 million) in the fourth quarter. The company had sales of 14.4 billion pesos. Comercial Mexicana fell 0.7 percent to 4.01 pesos.

LATIN AMERICAN MARKETS:

Argentina: Construction activity fell 5.9 percent in February from the year-earlier period, after declining 3 percent in January, according to the median estimate of three economists surveyed by Bloomberg News. The National Statistics Institute is due to release the report at 3 p.m. New York time.

The peso was little changed at 3.7152 per dollar.

The yield on the country’s inflation-linked peso bonds due in December 2033 rose 14 basis points, or 0.14 percentage point, to 25.33 percent, according to Citigroup Inc.’s local unit.

Chile: Industrial production dropped 9.2 percent in February from a year earlier, after declining 8.9 percent the previous month, according to the median forecast of 12 economists in a Bloomberg survey. The decline in industrial output in January was the biggest since 1999.

Chile’s unemployment rate rose to 8.4 percent last month, compared with 8 percent in January, according to the median estimate of 12 analysts in a Bloomberg survey.

The National Statistics Institute is set to release both reports at 9 a.m. New York time.

The peso plunged 1.8 percent to 583.5 per dollar.

The yield for a basket of Chile’s 10-year fixed-rate peso bonds dropped six basis points to 2.5 percent, according to Bloomberg composite prices.

Colombia: The urban jobless rate was unchanged at 14.9 percent in February, according to the median forecast of eight economists in a Bloomberg survey. The government’s statistics agency is due to release the report after noon New York time.

The peso dropped 2.9 percent to 2,566.93 per dollar.

The yield on Colombia’s benchmark 11 percent bonds due July 2020 rose 14 basis points to 9.83 percent, according to Colombia’s stock exchange.

Other prices in Latin American markets:

Brazil: The real weakened 1.6 percent to 2.3274 per dollar.

The yield on the zero-coupon, real-denominated bond due in January 2010 fell 13 basis points to 9.82 percent, according to Banco Votorantim.

Mexico: The peso rose 0.1 percent to 14.3387 per dollar.

The yield on Mexico’s 10 percent bond due December 2024 rose two basis points to 8.09 percent, according to Banco Santander SA.

Peru: The sol dropped 1.2 percent to 3.1707 per dollar.

The yield on Peru’s 8.6 percent bond maturing August 2017 rose five basis points to 6.1 percent, according to Citigroup Inc.’s unit in Lima.

ECONOMIES: Brazil will publish its central government budget, nominal and primary budget balances and net debt as a percentage of gross domestic product; Chile will publish February industrial production and unemployment; Colombia will publish its February unemployment rate and Argentina will publish February construction activity.

To contact the reporter on this story: Laura Price in London at lprice3@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos in New York at papadopoulos@bloomberg.net

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