EMERGING MARKETS-Latam stocks edge up on weak dollar after G20

* Bovespa rises 0.27 pct, Mexico’s IPC up 0.63 pct

* UBS upgrades Petrobras common shares to neutral

* Mexico’s IPC hits fresh intraday high

By Caroline Stauffer and Silvio Cascione

MEXICO CITY/SAO PAULO, Oct 25 (BestGrowthStock) – Latin American
stocks gained on Monday after a weekend meeting of Group of 20
finance ministers encouraged investors to continue selling the
dollar and purchasing riskier assets.

The G20 ministers shunned competitive currency
devaluations, agreeing markets should determine exchange rates,
but did not set targets to reduce trade imbalances.

The MSCI Latin American stocks index (.MILA00000PUS: ) added
0.08 percent while Mexico’s IPC index hit a new intraday life

“The G20 discussions did not result in anything that is
going to halt the general depreciation of the dollar,” said
Rodolfo Navarrete, head of analysis at brokerage Vector in
Mexico City.

Equities have developed a strong inverse relationship with
the dollar on speculation the U.S. central bank will extend
monetary easing. Expectations of cheap money in the world’s
largest economy pressure the dollar while boosting equities.

“This environment of a weak dollar helping Mexican stocks
is going to continue until the Federal Reserve Meeting in
November,” Navarrete said.

Mexico’s IPC (.MXX: ) rose 0.63 percent to 35,343 – trading
at its highest levels ever.

Top-weighted America Movil (AMXL.MX: ), one of the world’s
top telecommunications companies added 1.55 percent. The
company is expected to post a 35 percent jump in third quarter
profit on Wednesday.

The report next week will be the first to showcase the
results of this year’s consolidation of tycoon Carlos Slim’s
wireless, fixed line and cable assets.[ID:nN21234563]

ICA (ICA.MX: ), Mexico’s leading construction company, gained
0.84 percent. The company said on Monday it had pulled out of a
competition to build a subway in Panama in favor of aiming for
big scale contracts in Mexico. [ID:nN25206409]

Brazil’s blue-chip Bovespa index (.BVSP: ) rose 0.27 percent.

Vale (VALE5.SA: ) rose 1.22 percent, tracking gains in metals
prices that pushed copper to a 27-month high.

Preferred shares in state-run oil company Petrobras
(PETR4.SA: ) gained 1.03 percent, also helping push the index
higher as international crude prices rose.

In a report, UBS raised its rating on ordinary (PETR3.SA: )
Petrobras shares to ‘sell’ from ‘neutral’, with a target price
of 30 reais. The shares rose 1.35 percent.

“Our target price hasn’t changed, but with an estimate of
total returns of 15 percent per share, we are now putting a
‘neutral’ rating on the stock,” wrote analyst Lilyanna Yang.

Brazil’s Cosan (CSAN3.SA: ), the world’s largest sugar and
ethanol group, jumped 3.03 percent. The company said on
Saturday that net revenue rose 32.1 percent in the last fiscal
quarter as income from sugar and ethanol surged.

Chile’s blue-chip IPSA (.IPSA: ) rose 0.32 percent, lifted by
expectations of positive earnings results in the banking and
energy sectors later in the week.

“The IPSA is primarily influenced by the upcoming earnings
expectations and the performance of U.S. markets today,” said
Raul Barros, senior analyst at BBVA brokerage in Santiago.

Banco Santander Chile (STG.SN: ), the country’s top financial
institution, led gains, adding 1.64 percent while Banco de
Chile (CHI.SN: ) rose 1.58 percent.
(Additional reporting by Alvaro Tapia in Santiago and Elzio
Barreto in Sao Paulo; Editing by Andrew Hay)

EMERGING MARKETS-Latam stocks edge up on weak dollar after G20