NEW YORK–American depository receipts edged higher Tuesday as commodity names in Latin America rallied on expectations of stronger demand in 2005.
The Bank of New York Index of American depository receipts rose 0.34 to 119.97. The Latin American market rose 1.64 points to 133.30. Asia’s index added 0.58 to 109.35, and Europe’s index rose 0.20 to 124.51.
Brazil’s benchmark Ibovespa stock market index closed at a record high of 25,890.
“There is a general consensus that commodity prices will rise in 2005 and that benefits some of Latin America’s heavily weighted stocks such as Petrobras S.A. (PBR) and Companhia Vale Do Rio Doce (RIO),” said George Raby, international equities trader at Jefferies & Co.
He added that traders are “very optimistic” about Brazil, Chile and Argentina.
Earlier Tuesday, the board of Brazil’s state-oil company Petrobras S.A. (PBR) approved the acquisition of the Uruguayan natural gas distributor Conecta S.A., for $3.2 million. It is the company’s first move in Uruguay, adding to the oil firm’s rapid international expansion.
With the purchase, Petrobras has oil and gas production or distribution activities in eight South American countries. Shares of Petrobras ticked up 1.3% to $39.16.
Shares of iron ore miner Companhia Vale Do Rio Doce rose 4.2%, or $1.11, to $27.75.
Shares of Cristalerias de Chile S.A.’s (CGW) ended up 9 cents to $30.42 after the Chilean regional environmental commission approved its new $120 million glass container plant. The plant will produce 1,200 metric tons of glass a day.
The news was more mixed for the Mexican ADR market.
Market heavyweight wireless carrier America Movil (AMX) was rising 1.5% to $51.45 while phone company Telmex (TMX) was advancing 2.3% to $36.16.
Cement maker Cemex (CX) made gains of 1.6% to $35.84. Merrill Lynch downgraded its recommendation on Cemex to neutral from buy following a steep rise in the company’s stock price since September.
Glass maker Vitro (VTO) was slid 4% to $3.16 after the company’s shareholders approved the use of its shares in one unit to guarantee bonds issued by the company’s North American glass container division.
By Barnini Chakraborty
Source: Asia News Yahoo
Photo credit: Hagens_world via Visualhunt / CC BY-NC-ND
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