Brazil stocks end lower on risk aversion, real flat

(Updates to close)

SAO PAULO, July 22 (Reuters) - Brazilian stocks closed lower on Wednesday, snapping a five-session streak of gains as investors balked at pushing equities even higher.

The benchmark Bovespa index .BVSP fell 0.3 percent to 53,072.57 points after a day of volatile trading.

Brazil's currency, the real BRBY, traded near flat, strengthening 0.1 percent to 1.906 reais per dollar, close to its strongest level since September.

"It is natural to encounter some resistance to going above a certain point," said Adriano Moreno, a strategist at Futura Investimentos. "People are using this level to take profits."

The index had risen almost 9 percent from its opening last Wednesday at 48,875.63 through its 53,233.57 close on Tuesday.

"People want to put profits in their pockets," said Jose Simao, Jr, a director for equities trading at Intrader, a Sao Paulo-based brokerage.

After largely positively earnings reports last week, disheartening results from U.S. financial giants Morgan Stanley and Wells Fargo cooled investor enthusiasm on Wednesday.

Brazilian investors often look to U.S. markets to gauge international sentiment and risk-taking.

Two days of cautious congressional testimony from U.S. Federal Reserve Chairman Ben Bernanke also gave investors pause.

In local trading, state-controlled energy company Petrobras (PETR4.SA) fell 0.41 percent percent to 31.69 reais, dragged down by a decline in crude oil prices CLc1.

Mining company Vale (VALE5.SA), the world's largest iron-ore producer, slid 1.3 percent to 31.15 reais.

Petrobras and Vale have the largest weighting in the index.

Shares of Brazilian beverage company AmBev (AMBV4.SA) tumbled after antitrust regulators imposed a record fine for anti-competitive practices that limited rivals' market access. The stock sank 3.32 percent to 129.50 reais. [ID:nN22432823]

Lower oil prices benefited airliner Gol as Credit Suisse raised the company to outperform from neutral, calling it the preferred name among Brazilian air carriers. Shares of Gol (GOLL4.SA) gained 3.08 percent to 14.74 reais.

Changes in yields on Brazilian interest rate futures contracts <0#DIJ:> were mixed, with shorter-term contracts through the end of 2009 mostly slipping.

The yield for the contract due January 2010 DIJF0 inched up to 8.62 percent from 8.61 percent. The yield for the contract due January 2011 DIJF1 rose to 9.75 percent from 9.66 percent. Both are among the most widely-traded contracts.

Analysts expect the central bank's monetary policy committee will cut the benchmark interest rate at the end of its meeting on Wednesday by another 50 basis points.

The bank has already slashed 450 basis points off the rate, called the Selic, this year, which now stands at a record-low 9.25 percent.

Brazil's President Luiz Inacio Lula da Silva said on Tuesday he sees room for interest rates to fall further because of recent economic measures giving policymakers more leeway, but he stressed the ultimate decision lies with the central bank.