EMERGING MARKETS-Brazil stocks down on Oi drop, Mexico higher
* Bovespa hovers near 62,000 for more than a week * Shares of Grupo Oi plunge on CEO switch * Brazil's Bovespa down 0.34 pct, Mexico IPC up 0.21 pct By Danielle Assalve SAO PAULO, Jan 22 (Reuters) - Brazilian stocks dipped on Tuesday, dragged down by losses in the country's telecommunications firm Oi, and Mexico edged up to a record high, while traders pointed to technical barriers that could limit gains. Brazilian shares first rose after data showed German analyst and investor morale in January hit the highest level in more than 2-1/2 years, but the benchmark Bovespa index quickly reversed gains as it neared the 62,000 point level. The index ended the day down 0.34 percent at 61,692.29. The index had already risen above 62,000 twice this month only to fall back below. Analysts pointed to key resistance levels at 62,300 and the Bovespa's year-high of 63,470. Brazil's stock market has lagged other major markets such as Mexico as well as growing markets like Colombia, with investors rattled by a slowdown in Latin America's top economy. Brazil's Bovespa rose just over 7 percent in 2012 compared to a nearly 18 percent gain in Mexico's main index over the same period. "The market wants to see a better year, but we are not seeing many bigger bets on the stock market," said economist Daniel Cunha, at XP Investimentos in Sao Paulo. Monday's holiday in the United States and an upcoming market holiday in Brazil on Friday have kept trading volumes down. "As soon as this passes and volume returns to normal levels, the market will be able to break the resistance and head for a short-term quick rally towards 63,500 points," said Daniel Marques, an analyst with Agora Corretora in Rio de Janeiro. Preferred shares of Grupo Oi SA, Brazil's biggest fixed-line telephone company, plunged 7.93 percent after the company ousted Chief Executive Francisco Valim.. Shares of Cyrela Brazil Realty SA fell 2.7 percent after the company said late Monday that fourth-quarter sales declined 29 percent from the same period a year ago. Mexico's IPC index rose 0.21 percent to close at an all-time high of 45,320.30 points as shares in billionaire Carlos Slim's America Movil, one of the world's biggest telecommunications firms, rose 1.16 percent. Nonetheless, technical momentum indicators of the IPC are pointing to overbought levels that could push investors to take profits. Traders in Mexico said the market's current high could tempt investors to take profits, although prospects that Mexico could cut interest rates this year could help limit any drop. Mexico's central bank held borrowing costs steady last week, but said it could cut interest rates if inflation continues to cool and economic growth flags, dropping its recent threat to tighten policy. Mexico's top broadcaster Grupo Televisa rose 0.75 percent after announcing plans on Monday to increase its sports coverage this year and develop an English-language channel with Univision and ABC News. Latin America's key stock indexes at 23:15 GMT: Stock indexes daily % YTD % Latest change change MSCI LatAm 3,937.12 0.18 3.67 Brazil Bovespa 61,692.29 -0.34 1.21 Mexico IPC 45,320.30 0.21 3.69 Chile IPSA 4,535.38 0.18 5.44 Chile IGPA 22,078.17 0.21 4.78 Argentina MerVal 3,306.20 1.71 15.83 Colombia IGBC 14,821.88 0.29 0.72 Peru IGRA 21,625.27 -0.56 4.83 Venezuela IBC 482,883.50 -0.3 2.43
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