Cemex, Odebrecht, other Lat-Am corporates suffer during weak session; Kazakhstan in focus

By Christine Van Dusen

Atlanta, Oct. 10 – The new issue of notes from Kazakhstan continued to get attention in trading on an otherwise mostly weaker Friday for emerging markets assets, particularly those from Latin America.

The region’s corporate bonds moved wider with little to no liquidity, a New York-based trader said.

Bonds from Brazil-based Petroleo Brasileiro and Vale SA moved out as much as 8 basis points on Friday before closing wider by 3 bps and 5 bps, respectively, on very light volumes.

Most corporate bonds from Peru traded infrequently, with just metals and mining companies holding in fairly well, he said.

Mexico-based Cemex SAB de CV was “smacked down” another point, trading lower than in the previous down market, he said.

Brazil-based Odebrecht SA was another big underperformer, as was Braskem SA.

But Mexican banks found some support, and petrochemical company bonds – though weak – were not as weak as those from other sectors, he said.

“This slump will continue in the short term and could turn ugly if it lasts well through October,” he said.

In other news, China’s Energy Earth (Hong Kong) Co. Ltd. canceled its plan to issue renminbi-denominated notes, a market source said.

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