EMERGING MARKETS-Latam stocks drop ahead of U.S. elections
* Obama, Romney deadlocked ahead of Tuesday's election * Greece debt crisis back in spotlight ahead of key vote * Brazil electrics fall on gov't compensation plan * Brazil Bovespa drops 0.7 pct, Mexico IPC up 0.16 pct By Asher Levine and Danielle Assalve SAO PAULO, Nov 5 (Reuters) - Latin American stocks fell on Monday as uncertainty over upcoming elections in the United States and worries over Greece's debt crisis sapped demand for riskier assets. The MSCI Latin American stock index lost for the first session in three, dropping 0.5 percent to 3,674.51. Electric utilities drove Brazil's benchmark Bovespa index to its second losing session in three while telecommunications firm America Movil buoyed Mexico's bourse. Shares slipped as markets across the region reopened after national holidays on Friday, with investors turning their attention to the outcome of Tuesday's U.S. presidential elections. Recent polls show President Barack Obama and Republican challenger Mitt Romney nearly deadlocked. "The volatility is coming from uncertainty over the U.S. elections," said Pedro Galdi, chief strategist at SLW Corretora in Sao Paulo. "While Obama has a slight advantage it's still possible we could see a situation like Bush vs Gore which could take weeks to be decided." Galdi said investors were also nervous ahead of a vote in Greece on Wednesday on unpopular cost cuts and tax hikes that are required in exchange for further international aid. The measure is expected to scrape through parliament. Brazil's benchmark Bovespa stock index fell 0.7 percent to 57,973.22 as shares of widely traded commodities firms Vale and OGX slipped. Shares of electricity firms weighed on the index after an offer from Brazil's government to compensate the companies as part of a concession renewal plan fell short of what some firms expected to receive. Brazilian state-run electricity holding company Eletrobras plunged over 8 percent after the government's offer came to less than half what Eletrobras, which is appealing the decision, had expected. "The situation is still cloudy for electric utilities and the sector as a whole is suffering from that," said Ariovaldo Santos, an equities manager at H. Commcor in Sao Paulo. Shares of electric utility CESP fell 10 percent, while those of rival CTEEP dropped 5.5 percent. Units of Banco Santander Brasil SA fell 2.5 percent after analysts at Bank of America Merrill Lynch trimmed their recommendation to "underperform" from "neutral" on concern that delinquencies at the bank will not ease as quickly as expected and that a decline in borrowing costs in Brazil will weigh on revenue for the next two years. Mexico's IPC index posted a slight gain, rising 0.16 percent to 41,828.81 as shares of telecommunications firm America Movil, controlled by billionaire Carlos Slim, rose 1.3 percent. Chile's IPSA index dropped its most in two weeks, losing 0.22 percent. Banco de Credito e Inversiones fell 1.3 percent, contributing most to the IPSA's losses, while energy group Enersis rose 0.7 percent, helping support the index. Latin America's key stock indexes at 1434 GMT: Stock indexes daily % YTD % Latest change change MSCI LatAm 3,674.51 -0.5 2.52 Brazil Bovespa 57,973.22 -0.7 2.15 Mexico IPC 41,828.81 0.16 12.81 Chile IPSA 4,256.90 -0.22 1.90 Chile IGPA 20,876.99 -0.16 3.71 Argentina MerVal 2,392.91 -0.09 -2.83 Colombia IGBC 14,379.46 -1.03 13.53 Peru IGRA 20,868.55 0.01 7.16 Venezuela IBC 359,426.50 0.01 207.11
- South Korea investigates capsized ferry crew, stowage as rescue hampered |
- After Nevada ranch stand-off, emboldened militias ask: where next?
- Retailer Michaels Stores confirms payment card data breach
- All 338 Korean students, teachers rescued from sinking ferry - school official
- Nobel winner Garcia Marquez, master of magical realism, dies at 87 |