Tag Archives: Market Events

EMERGING MARKETS-Asset Latam recovers from recent losses, Petrobras rebound supports stocks | Instant News


    * Drop in U.S. yields helps risk assets
    * Brazil stocks recover from worst day in 10 months
    * Mexican peso rises for first time in 7 sessions

 (Adds details, updates prices)
    By Susan Mathew
    Feb 23 (Reuters) - Brazil shares rose on Tuesday as oil
major Petrobras bounced back from a bruising sell-off, with most
Latin American assets recovering from a slew of recent losses as
pressure from high U.S. yields eased. 
    The Bovespa stock index rose 2.1% after a near 5%
slide on Monday, as shares in Petroleo Brasileiro
recovered 10% from a 22% plunge that wiped out 71 billion reais
($13 billion) in market value. 
    Petrobras' board is set to meet on Tuesday to rule on
Brazilian President Jair Bolsonaro's appointment of former
Defense Minister Joaquim Silva e Luna to helm the state-run
firm.
    "Bolsonaro's decision to replace Petrobras' CEO is dashing
hopes of Brazil's return to economic orthodoxy," said
strategists at BCA Research. Analysts broadly note that the
president is adopting populist policies instead of fiscal
consolidation ahead of elections 20 months down the line.
    "The central bank is likely to lift the policy rate in
response... which would keep government borrowing costs above
the nominal GDP growth rate," they said. "A violation of the
fiscal spending rule would weigh further on the real amid higher
inflation expectations, and bonds are likely to underperform as
rates rise." 
    The real rose 0.3% after marking its worst
session in a month on Monday, while dollar bonds and the cost to
insure exposure to Brazil's sovereign debt steadied following
dramatic falls on Monday.
    Charts show that Brazil's weighting is declining in the main
JPMorgan EM bonds index.   
    A recent spike in U.S. treasury yields had weighed on
risk-driven assets, particularly emerging market bonds and
currencies, as investors sought safer investment paths. Latin
American assets fell the most among their peers.
    But yields dropped on Tuesday after Federal Reserve Chairman
Jerome Powell said the economy still needed central bank
support.
    "One reason for Latam FX struggles may be that markets
expect that an inflation overshoot in the U.S. would spill over
to other economies, and would be harder to contain in Latam,
where central bank credibility is perceived to be weaker," said
Ilya Gofshteyn, senior EM macro strategist at Standard
Chartered.
    Mexico's peso rose for the first time in seven days
against a stronger dollar. The peso lost 3.7% over the last six
days on concerns about factory activity as fuel supply from
Texas was impacted by a deep freeze.
    Chile's peso, which has outperformed its regional
peers thanks to strength in the copper price, extended gains
into an eight consecutive session. 
    
    Key Latin American stock indexes and currencies:
    
                              Latest     Daily % change
 MSCI Emerging Markets         1393.90             -0.27
                                        
 MSCI LatAm                    2330.32              2.07
                                        
 Brazil Bovespa              114975.20              2.05
                                        
 Mexico IPC                   45274.80              0.73
                                        
 Chile IPSA                    4506.23             -1.38
                                        
 Argentina MerVal             47672.85            -3.239
                                        
 Colombia COLCAP               1351.21             -0.07 Currencies             Latest     Daily % change
 Brazil real                    5.4380              0.30
                                        
 Mexico peso                   20.5595              0.75
                                        
 Chile peso                      705.4              0.14
                                        
 Colombia peso                 3583.72              0.20
 Peru sol                       3.6517              0.00
                                        
 Argentina peso                89.5300             -0.10
 (interbank)                            
                                        
 
    
 (Reporting by Susan Mathew and Sruthi Shankar in Bengaluru,
graphic by Marc Jones in London; Editing by Nick Macfie and
Rosalba O'Brien)
  

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Shares in Italian highway group ASTM surged in a bid to make the company private | Instant News


MILAN, Feb 22 (Reuters) – ASTM shares surged 27% on Monday, lifted by a buyout offer from a top Italian motorway group investor who wants to take the company private and revamp it.

Nuova Argo Finanziaria (NAF), which holds a 42% stake in ASTM, said at the weekend it would offer 25.60 euros per share in a new vehicle to buy minority investors at an outlay of up to 1.7 billion euros ($ 2 billion).

This represents a premium of 28.8% over ASTM’s official closing price on Friday.

The NAF said it plans to transform business, adding it will be easier to pursue reorganization of unlisted companies.

The Italian Gavio family are major investors in the NAF along with the infrastructure arm of French private equity firm Ardian.

Ardian agreed to invest in ASTM just days before a highway bridge operated by toll road company Atlantia collapsed in August 2018, killing 43 people.

In response to the tragedy, the Italian government has stepped up investment oversight by concessionaires, establishing a new body to monitor safety standards.

$ 1 = 0.8269 euros Report by Elisa Anzolin, written by Valentina Za; Edited by Kirsten Donovan

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Brazilian waste processor Orizan completed a $ 103 million IPO | Instant News


SAO PAULO, February 11 (Reuters) – Brazil’s Orizan Valorizacao de Residuos SA, which converts waste to biofuel, has completed an initial public offering worth 554 million reais ($ 103.23 million), according to a securities filing on Thursday.

Orizan sets its offering price at 22 reais per share, compared to an indicative range of 20 reais to 27 reais per share.

The company earned 381.4 million reais, while shareholders sold 172.6 million reais in shares. ($ 1 = 5,3665 reais) (Reporting by Aluisio Alves; Editing by Sam Holmes)

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Brazilian maritime services company Oceanpact completed a $ 227 million IPO | Instant News


SAO PAULO, February 10 (Reuters) – Brazilian maritime service provider Oceanpact Servicos Maritimos has completed an initial public offering of 1.22 billion reais ($ 226.51 million), according to a securities filing on Wednesday.

Oceanpact is pricing the offer at 11.15 reais per share, below the lower limit of the indicative range to 13.85 reais per share.

The company raised 920 million reais in the offering, which aims to expand its fleet and purchase other equipment, while shareholders sell about 300 million reais of shares. ($ 1 = 5,3860 reais) (Report by Aluisio Alves Written by Jake Spring Editing by Chris Reese)

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UPDATE 2-Travel Food Company SSP Evaluates More Financing Options | Instant News



* SSP plans £ 500million cash call – FT * Co says it continues to assess merits of fundraising * SSP says its liquidity position is strong continued to assess merits of fundraising fundraiser, but refrained from confirming a Financial Times report that he was forecasting a £ 500million ($ 692million) fundraiser within weeks. further lockdowns in the UK and mainland Europe resulting in heavy financial losses. “There remains significant uncertainty regarding COVID-19 and associated travel restrictions,” SSP Group said. “The group continues to assess the merits of a range of financing options, both debt and equity.” The company said its liquidity position was strong, with undrawn cash and available facilities of around £ 520million as of September 30. report that the company plans to raise up to £ 500million from shareholders is confirmed, this would mark SSP’s second fundraising appeal since the outbreak of the pandemic. It raised nearly £ 216million through an emergency stock issue in March last year, with SSP in December saying it expected first quarter sales to fall by 80% due to the rise in coronavirus cases in Europe. 12 months $ 1 = 0.7225 pounds Reporting by Samantha Machado in Bengaluru; Edited by Aditya Soni, Ramakrishnan M. and Pravin Char.



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