Credit: After scoring an average gain of more than 73% in 2017, 19 top South America-based stocks trading on U.S. markets are off to a solid start in 2018.
Those same stocks, led by names including MercadoLibre ( MELI ), Vale ( VALE ) and Latam Airlines ( LTM ), have climbed an average 6% so far in January.
The benchmark indexes tracking South America's four leading stock markets scored an average 38.3% gain in 2017. The biggest move among those was Argentina's Merval, up a staggering 77.7%.
In 2018, the four indexes have climbed an average 2.9%, lagging their U.S. counterparts. The exception has been the Caracas exchange, in Venezuela. It has rebounded 5.1% in January, but only after hyper-volatility lifted the gauge more than 1,600% through the first nine months of 2017, before collapsing 99% in mid-October.
Some of January's biggest gains among U.S.-traded stocks have come from petro-related issues, buoyed by the recovery in global oil prices . Colombia's Ecopetrol ( EC ) has gained more than 17% since the start of the month. Brazil's Braskem ( BAK ) is up 10% and Argentina's YPF (YPF) has climbed 7%.
Grupo Supervielle (SUPV), the Argentina-based bank listed on both the IBD 50 and Global Leaders lists, has posted a 7% gain in January, after knocking out a 123% advance in 2017.
The gains scored by other leading stocks have also been plenty healthy, and involved valid chart patterns and buy points.
MercadoLibre broke out of a cup-with-handle base in mid-December. The Argentina-based e-commerce site , somewhat similar to eBay (EBAY), climbed 22% past that buy point. Some 8.3% of that gain occurred in January, despite a pause to form a three-weeks tight pattern .
On Friday, shares remained well within a buy range above the pattern's 335.09 buy point. The relative strength line is near new highs, a good sign.
Brazil's mining juggernaut Vale has been an odd case. It cleared an 11.57 buy point in a cup-with-handle base, also in mid-December.
It climbed more than 16% above the buy point, and more than 10% since the start of the year. Volume across the breadth of that move has been weak, though not a topping signal. The company has reported powerful EPS growth for the past five quarters . But analysts' consensus is for a 66% earnings decline for the fourth quarter.
Chile's Latam Airlines has gained more than 13% this month. On Thursday, the stock broke out above a 15.16 buy point in a four-month base. Volume was more than 40% above average, a solid increase. The relative strength line made a new high as Latam broke out, a positive signal for the breakout.
The stock was nearing the top of its buy range on Friday.
Latam is expected to post a 120% increase in earnings in its Q4 report. Consensus views see another 83% earnings advance through 2018.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
