Brazil Shares Gain, Led by Banks, on Lending Gain: Latin Stocks

Sept. 26 (Bloomberg) -- Brazil's main stock index rose for a fourth day, led by banks, after an increase in lending last month bolstered confidence in economic growth.

The Bovespa Index of the most-traded stocks on the Sao Paulo exchange rose 857.05, or 1.5 percent, to 59,714.83, rising to a record for a third session. Mexico's Bolsa index was little changed, rising 8.41 to 30,303.18.

Banco Itau Holding Financeira SA, Brazil's biggest non-state bank, jumped 3.40 reais, or 3.9 percent, to 90.10 reais, the highest in two months. Banco Bradesco SA, the second-biggest non- state bank, rose 1.65 reais, or 3.2 percent, to 52.65 reais.

Bank lending in Brazil, Latin America's largest economy, rose 2.9 percent in August from July as lower interest rates and higher employment fueled consumer spending, the central bank said in a report distributed yesterday in Brasilia. Lending climbed 25 percent from August 2006.

``First the commodity producers recovered and now the banks,'' said Roni Lacerda, who manages the equivalent of $840 million at Mercatto Gestao de Recursos in Rio de Janeiro. ``Everyone is calming down after the risk aversion caused by the U.S. credit problems.''

Cia. Vale do Rio Doce, the world's largest nickel and iron ore producer, rose 88 centavos, or 1.8 percent, to 50.80 reais. BlackRock Inc. increased its stake in Vale, the world's largest iron-ore producer. BlackRock now holds 5.7 percent of the preferred shares, Rio de Janeiro-based Vale said today in a statement to the U.S. Securities and Exchange Commission.

On Mexico's Bolsa, mobile-phone company America Movil SAB rose and homebuilders declined. Corp. Geo SAB, Mexico's largest homebuilder by sales, fell 13 percent, the most in almost seven years, after saying sales for the quarter and year would be less than expected because of heavy rains in Mexico.

In other Latin American markets, benchmark indexes in Argentina, Chile, Colombia and Peru rose, while Venezuela's fell. The Morgan Stanley Capital International index of Latin American shares rose 1.7 percent to 4,082.70.



Banco Bradesco SA (BBDC4 BS)
Banco Itau Holding Financiera SA (ITAU4 BS)
Cia. Vale do Rio Doce (VALE5 BS)
America Movil SAB (AMXL MM)
Corp. Geo SAB (GEOB MM)