Symbol: PRB.BR

LATAM Weekly Summary

Posted on by Romeo Alvarez

Argentina: Uptrend Under Pressure
Brazil: Uptrend
Mexico: Uptrend

Last week, Brazil’s main equity benchmark gained 1.64% and advanced for a fifth consecutive week. Brazilian equities continue to trend higher on expectations that President Jair Bolsonaro will pass measures to reduce crime and government involvement in the economy. The country’s new Economy Minister Paulo Guedes promised to lessen the government’s outsized role in the economy, cut Brazil’s tax burden, carry out privatizations, and reduce the government’s deficit. Leading sectors are those with direct exposure to the domestic economy, including Transportation, Utility, Financial, Retail, and Consumer Cyclical. Leading growth ideas continue to trade in a positive manner, but many are now extended from proper buy points.

LATAM Weekly Summary

Posted on by Romeo Alvarez

Argentina: Uptrend Under Pressure

Brazil: Uptrend

Mexico: Uptrend

Brazil’s main equity benchmark advanced 2.6% last week and hit new all-time highs. Brazilian equities continue to trend higher on expectations that President Jair Bolsonaro will pass measures to reduce crime and government involvement in the economy. The country’s new Economy Minister Paulo Guedes promised to lessen the government’s outsized role in the economy, cut Brazil’s tax burden to 20% of GDP from 36%, carry out privatizations, and tame government spending. Guedes, a University of Chicago-trained economist, added that pension reform (social security) was Brazil’s most important issue. Leading sectors are those with direct exposure to the domestic economy  and include: Transportation, Utility, Financial, Retail, and Consumer Cyclical.