LATAM Weekly Summary

Key points from this week’s report:

Please refer to the attached PDF for the full report.

Brazil’s Bovespa benchmark gained 2.1% last week and remains in a Confirmed Uptrend. We recommend that investors increase risk in Brazilian equities.

Mexico’s benchmark gained 0.8% last week. The market remains in a Confirmed Uptrend with three distribution days. We recommend that investors gradually increase risk in Mexican equities.

We added Banco Pan (PMP.BR) and Vale (VA3.BR) to the LATAM Focus List. With these additions, the total number of Focus List ideas in LATAM has increased to nine.
Stocks of interest include Gerdau (GGB.BR; GGBR4:BZ), Cosan (COS.BR; CSAN3:BZ), PetroRio (HRT.BR; PRIO3:BZ), Usiminas (US5.BR; USIM5:BZ), Vamos Locacao (VLD.BR; VAMO3:BZ), Banco Inter (IIP.BR; BIDI4:BZ), Cemex (CMC.MX; CEMEXCPO:MF), and Grupo Mexico (GME.MX; GMEXICOB:MF). Additional names are listed on page 3 and 4.

Please refer to the attached PDF for the full report.

Brazil’s Bovespa benchmark gained 1.8% last week and was upgraded to a Confirmed Uptrend. We recommend that investors gradually increase risk in Brazilian equities.
Mexico’s benchmark declined 1.6% last week, but remains in a Confirmed Uptrend. It has three distribution days.
Last week, we removed B3 (BMF.BR; B3SA3:BZ) after it sharply breached below support at the 200-DMA. With this, the total number of Focus List ideas in Latin America comes down to eight.

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.