CMA Latam
São Paulo, 23 - South American shares ended today's session near stability, but lost more than 1% in the week, pressured by lower commodity prices and local factors - political uncertainty in Brazil and MSCI's decision on Argentina's market status, for example. For the next week, the price move in commodity markets - especially in oil futures - will set the tone for the region's shares, and traders will keep an eye in Brazil, where public prosecutors may formally accuse President Michel Temer of corruption. ARGENTINA Merval Index closed up 0.32% at the end of a volatile session, at 21,066.14 points, but lost 1.05% in the week, weighed on by an unexpected decision by MSCI on Tuesday to keep Argentina as a "frontier market." Investors expected an upgrade to the "emerging market" status. The thin trading volume added volatility to today's business. "As is often the case on Fridays, the local market posted significantly lower business volume, both in stocks and bonds. Local operations accounted for a total of $ 305 million, one of the lowest volumes in the month," said Eduardo Fernández, an analyst at Rava Bursátil. Locally traded US dollar rose by 0.21%, closing at 16.17 Argentinean pesos, influenced by higher demand after the MSCI decision. BRAZIL Ibovespa fell by 0.3%, closing at 61,087.13 points, influenced by the decline in Petrobras' shares and by the continued uncertainty regarding President Michel Temer strength to remain in office. Next week public prosecutors may officially accuse him of involvement in a corruption scandal. In the week, Ibovespa accumulated a 0.87% fall. "Today's decline is a continuation of what has been happening in recent weeks since Michel Temer was denounced by Joesley [Batista]," said DNAInvest's partner and president, Alfredo Sequeira. "The market is disbelieving the Temer government. Foreign investors realize its lack of credibility," he added. Sequeira mentioned that the US suspension of Brazilian fresh meat imports and Temer's lack of prestige in his visit to Russia and Norway are indicative of Brazil's current image abroad. Petrobras' shares closed lower (PETR3 -1.07%, PETR4 -0.91%) after the company disclosed that it might list its fuel distributor subsidiary BR Distribuidora. Investors believe that the company could raise more money if the oil company sold the asset. Locally traded US dollar rose by 0.05%, closing at R$ 3.3390. COLOMBIA Colcap, the main index of the Colombian Stock Exchange, fell by 0.03%, closing at 1,435.12 points, due to a decrease in Ecopetrol and Bancolombia shares. Andrés Fonseca, an analyst at Alianza Valores, said that the market closed with no direction in a session weak in fundamentals. Fonseca stated that during the week the emerging market's correction after a sharp fall in oil prices abroad pushed down Ecopetrol's and Bancolombia's ADRs traded in New York. That, in turn, pressured the Colcap, which lost 2% in the week. Locally traded US dollar closed at 3,024.00 pesos, a 0.10% fall, due to the recovery in oil prices. Translation by Ricardo Gozzi