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Latin stocks charge ahead
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April 16, 1999: 4:54 p.m. ET
Venezuelan bolsa rises 8.1 pct. on conflict resolution; others make big gains
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NEW YORK (CNNfn) - Renewed international interest in Latin American markets, expectations of a rebound in commodities prices, interest-rate cuts and an easing of political tensions were among the factors sending some bolsas sky high Friday.
For the second day in a row, stocks in Venezuela hogged the spotlight, rising as much as 9.5 percent at one point on news that a resolution to the conflict between President Hugo Chavez and the opposition-dominated Congress over a special-powers bill was imminent.
The IBC index ended the day up 371.57 points, or 8.11 percent, at 4,951.49. On Thursday, stocks closed up 9 percent.
Venezuelan legislators on Thursday said they had virtually finalized a deal with the government on the law, which grants Chavez authority to decree certain crucial economic and fiscal reforms.
Inverunion broker Hector Perez said buying interest was coming from both local and international investors, the latter attracted by recommendations from Wall Street to return to Latin markets in the wake of Brazil's currency crisis.
In other news, the Venezuelan Central Bank said Friday it was cutting its discount and rediscount interest rate by 500 basis points (5.0 percentage points) to 55 percent, effective April 20.
Other bolsas in the region were taking the high road as well. Stocks on Brazil's Bovespa index were up 158 points, or 1.41 percent, at 11,404 in late trade as investors adjusted their positions ahead of an options expiration Monday and as hopes about a soon-to-be-released sovereign debt issue brightened sentiment.
In Mexico, equities continued their record run, led by surging mining stocks and investor expectations of rising commodity prices, traders said. By the market's close, the IPC index was up 65.82 points, or 1.20 percent, at 5,556.44.
Shares elsewhere also made big strides. In Argentina, the Merval index leapt 7.82 percent to 493.70, buoyed by the regional upswing, options maturities, a surge in metals stocks and good prospects for local steelmakers. In Peru, Lima's General Index soared 4.23 percent to 1,585.99, boosted by a international investor interest and a strong performance in benchmark stock Telefonica del Peru. And in Chile, shares in late afternoon were up 1.32 percent at 4,521.97, as investors cheered U.S.-based Duke Energy Corp.'s offer to buy a bigger stake than it originally said it would in power producer Endesa-Chile.
Interest-rate cuts gave a leg up to equities on the IBB index in Colombia, which closed up 0.93 percent at 999.52. Dealers said Friday's cut in the central bank's overnight and seven-day repo, or lending, rates was supportive because it shaved some of the premium off investment in the fixed income market while signaling a steady trend toward looser monetary policy needed to help rekindle economic growth.
Toronto buoyed by resources
In Canada, gains on the Toronto Stock Exchange were less flashy but still solid, with resource stocks once again providing support. The 300 Composite index closed up 22.41 points, or 0.32 percent, at 7,012.90.
The majority of the exchange's 14 subindexes posted gains, led by gold and precious metals, which soared 7 percent, and oil and gas stocks, which leapt 4 percent.
Among the day's decliners, the communications and media sector lost 2.76 percent. 
-- from staff and wire reports
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