Category: Equity

Brazilian financial assets fell significantly as media speculation increased over the involvement of President Luiz Inacio Lula da Silva’s in an unfolding corruption scandal. Stock prices fell 3.3% and the real lost 3.5% against the US dollar. Until now, the political funding scandal had not affected Lula’s popularity or hurt financial markets.

Colombia’s Stock Exchange Index rose a record, led by Bavaria, South America’s second-biggest brewer, on speculation SABMiller may announce a takeover of the company. Colombia’s IGBC index rose 168.72, or 2.9 percent, to 5,953.94, the highest since the nation’s three exchanges were unified in July 2001. Colombia’s foreign direct investment rose by a third in the first quarter to $822 million from a year earlier, its highest level in three years, as the country’s improved security and expanding economy helped boost investor confidence

Brazil’s Bovespa stock index rose 3.4 percent Tuesday after Roberto Jefferson, a Labor Party deputy who says President Luiz Inacio Lula da Silva’s government paid bribes for legislative support, said he has no proof for his allegations in testimony to the lower house ethics committee. Jefferson still clams, however, that the ruling Workers’ Party tried to pay legislators for votes.

Brazil’s budget airline Gol Linhas Aareas Inteligentes raised $241 million last week through an offering of primary and secondary shares. Shares were priced at $14.28. US investment bank Morgan Stanley, which coordinated the offering, exercised options on further shares during the offering.

Mexican tycoon Ricardo Salinas Pliego plans to delist the stocks of three companies he controls from the New York Stock Exchange. TV Azteca, Mexico’s second television network, Grupo Elektra, the country’s main home appliance retailer, and cellphone company Grupo Iusacell plan shareholder meetings to approve delisting from the NYSE. Salinas Pliego cited “over- regulation” for the decision. However, the US SEC is suing him for fraud and last week Mexican regulators fined TV Azteca, Salinas Pliego and a director $2.3 million for violating local securities law. Finance Minister Francisco Gil Díaz also demanded prosecutors bring criminal charges against Salinas Pliego for insider trading.

Chilean pulp maker Celulosa Arauco y Constitucion (Arauco) plans to place a $300 million bond issue on the New York Stock Exchange April 12. The company has begun a road show to advertise the sale that will travel to Singapore, Hong Kong, London, Boston and New York. JP Morgan is the lead manager of the issue.