EMERGING MARKETS-Brazil stocks in modest gains, Mexico flat

Mon Dec 10, 2012 10:03am EST

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* Bovespa gains after breaking resistance Friday at 58,000
    * Mexico's IPC falls after four-day rally
    * Brazil Bovespa rises 0.62 pct, Chile IPSA slips 0.23 pct

    By Asher Levine and Danielle Assalve
    SAO PAULO, Dec 10 (Reuters) - Brazilian stocks posted modest
gains on Monday after the Bovespa broke technical resistance
levels, while Mexico's IPC index remained little changed.
    Brazil's benchmark Bovespa stock index opened lower
as profit-takers took advantage of Friday's 1.4 percent gain,
the index's best performance in a week. Shares turned positive
shortly afterwards, however, rising 0.62 percent to 58,851.84,
their highest intraday level in over a month.
    "When we rose above 58,000 points (on Friday) we broke
technical resistance, which turned the Bovespa into a buyer's
market," said Anderson Luz, a managing partner with InTrader in
Sao Paulo. "On a Monday with few indicators, we will move mostly
sideways."
    OGX, the oil company controlled by Brazilian
billionaire Eike Batista, rose 5.4 percent, contributing most to
the index's gains, while state-controlled rival Petrobras
 added 1.2 percent.
    Common shares in brewer Ambev rose over 11
percent to 85.49 reais while preferred shares were
little changed at 88 reais. The company said on Friday that it
had proposed a restructuring that would leave it with only one
class of shares. 
     Brazil's Bovespa is up just 3.6 percent in 2012, compared
with a gain of over 15 percent in Mexico's IPC index and
a 13 percent rise in the S&P 500 index. 
    Investors have been concerned over heavy government
intervention in Brazil's private sector and lackluster economic
growth, while jitters over fiscal negotiations in the United
States have sapped foreign demand for local shares.
    "The Bovespa still looks like it could rally a bit at the
end of the year," said Walter Mendes, a partner with Cultinvest
in Sao Paulo, citing signs of a gradual improvement in Brazil's
economy. "The fiscal cliff is the major deciding point on that,
but everyone thinks a deal will be reached."
    Mexico's IPC index edged slightly higher, adding 0.08
percent to 42,832.65.
    A technical indicator known as the relative strength index
remained near "overbought" territory, however, indicating stocks
may be due to fall in coming sessions.
    Lender Grupo Financiero Banorte rose 2
percent, contributing most to the index's gains, while
broadcaster Grupo Televisa slipped 0.63 percent.
    Chile's IPSA index fell for the third straight
session, losing 0.23 percent to 4,127.58.
    Shares in regional energy group Enersis rose 1.34
percent after the company announced late on Friday it had
clinched a key deal with minority shareholders over a
controversial capital increase. 
    
    Latin America's key stock indexes at 1435 GMT:
 Stock indexes                           daily %      YTD %
                          Latest          change     change
 MSCI LatAm                  3,670.84       0.29       1.61
                                                  
 Brazil Bovespa             58,851.84       0.62       3.70
                                                  
 Mexico IPC                 42,832.65       0.08      15.52
                                                  
 Chile IPSA                  4,127.58      -0.23      -1.20
                                                  
 Chile IGPA                 20,287.56      -0.17       0.78
                                                  
 Argentina MerVal            2,490.50       0.42       1.13
                                                  
 Colombia IGBC              14,407.29      -0.13      13.75
                                                  
 Peru IGRA                  19,918.68       -0.1       2.29
                                                  
 Venezuela IBC             424,767.88          0     262.94
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