Symbol: HAP.BR

LATAM Weekly Summary

Posted on by Romeo Alvarez

Key points from this week’s report:

 

  • Brazil’s Bovespa benchmark declined 0.2% last week. It was shifted to an Uptrend Under Pressure from a Confirmed Uptrend as the index faced resistance at levels not seen since the start of the pandemic.
  • Mexico’s benchmark declined 1.1% last week after hitting resistance near the 45,000 level. The index added a fifth distribution day on December 22 and was shifted to an Uptrend Under Pressure from a Confirmed Uptrend.
  • We added Locaweb ( LSD.BR ) to the Focus List, taking the total number of Focus List names to 10.
  • Stocks of interest include Gerdau ( GB.BR; GGBR4:BZ ), Cyrela ( 3CY.BR; CYRE3:BZ ), Companhia de Locacao das Americas ( LON.BR; LCAM3:BZ ), Telesites ( TBO.MX; SITESB1:MF ), Grupo Bimbo ( BI2.MX; BIMBOA:MF ), and Becle ( BEC.MX; CUERVO*:MF ). Additional names are listed on page 3.

LATAM Weekly Summary

Posted on by Romeo Alvarez

Key points from this week’s report

  • Brazil’s Bovespa benchmark rallied 4.3% last week, registering its fourth consecutive weekly gain. It remains in a Confirmed Uptrend with three distribution days. The benchmark is now back to pre-COVID levels.
  • Mexico’s benchmark fell 0.6% last week, but continues to trade above its key levels of support. The index remains in a Confirmed Uptrend.
  • The total number of ideas on the LATAM Focus List remains at seven. Interconexion Electrica ( ISA.CO; ISA:CB ) remains actionable.
  • Stocks of interest include Hapvida ( HAP.BR; HAPV3:BZ ), Raia Drogasil ( DR3.BR; RADL3:BZ ), PetroRio ( HRT.BR; PRIO3:BZ ), Banco Inter ( IIP.BR; BIDI4:BZ ), GOL ( GI4.BR; GOLL4:BZ ), Vivara ( VPO.BR ), Grupo Bimbo ( BI2.MX; BIMBOA:MF ), Becle ( BEC.MX; CUERVO*:MF ), and Grupo Mexico ( GME.MX; GMEXICOB:MM ). Additional names are listed on page 3.

LATAM Weekly Summary

Posted on by Romeo Alvarez

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • Brazil’s Bovespa benchmark rose 2.9% last week. It was upgraded to a Confirmed Uptrend from Uptrend Under Pressure as the distribution day count came down to five from eight. The outlook remains favorable for Brazilian equities.
  • Mexico’s benchmark declined 0.4% last week and remains below its 50-DMA. It was downgraded to a Downtrend from an Uptrend Under Pressure.
  • The number of Focus List ideas remains unchanged at three.
  • Stocks near buy points with high technical ratings include Sociedad Quimica y Minera ( SQB.CL; SQM/B:CI ), Localiza ( LOC.BR; RENT3:BZ ), Hapvida ( HAP.BR; HAPV3:BZ ), Banco Inter ( IIP.BR; BIDI4:BZ ), Minerva ( MNV.BR; BEEF3:BZ ), PetroRio ( HRT.BR; PRIO3:BZ ), Duratex ( SAT.BR; DTEX3:BZ ), and Qualitas ( QCC.MX; Q*:MF ). Additional names are listed on page 3.

Global Sector Commentary

Posted on by Kenley Scott

Key points from this week’s commentary:

 

Brazil is more than 6% off lows in two weeks and Mexico is back above its 40-WMA for the first time in five months after posting a follow-through day on Thursday.

Our top pick is sole Focus List name Banco del Baijo (BJI.MX; BBAJIOO MM).

Most names in Brazil are still setting up and not yet actionable. However, in Mexico, given the recent follow-through day, several stocks are immediately buyable, in our view. These include Mexichem (CSB.MX; MEXCHEM MM); Alpek (ALP.MX; ALPEKA MM); Bolsa Mexicana de Volares (BMV.MX; BOLSAA MM), and Wal-Mart de Mexico (WAV.MX; WALMEX MM).