EMERGING MARKETS-Brazil stocks choppy with bank and oil shares down

Thu Jan 31, 2013 10:21am EST

Related Topics

* Petrobras slides for fourth session after fuel price hike
    * Mining firm Vale pushes up Brazil index
    * Brazil Bovespa gains 0.19 pct, Mexico IPC down 0.41 pct

    By Asher Levine and Danielle Assalve
    SAO PAULO, Jan 31 (Reuters) - Brazilian stocks were choppy
on Thursday as gains by mining firm Vale offset losses by banks
and oil producers.
    Mexico's IPC index eased off record highs for the
second straight session and Chile's bourse edged lower.
    Brazil's benchmark Bovespa stock index rose 0.19
percent to 59,448.02 but is set to close the session with its
first monthly loss since October.
    Preferred shares of iron-ore mining firm Vale SA 
rose 1.6 percent, contributing most to the index's gains, after
Bank of America Merrill Lynch analysts raised their
recommendation on the firm's U.S.-traded shares to "buy" from
"neutral," saying they were "more comfortable with the
risk-reward balance." 
    Shares of state-controlled oil company Petroleo Brasileiro
SA, known as Petrobras, slid for the fourth straight
session, losing 0.3 percent.
    The shares dropped their most in seven months in the
previous session after a fuel price rise failed to ease investor
concerns about the health of the company's finances.
    "Petrobras has been dragging along with this question of
price adjustments and the market is visibly unhappy with the way
this was determined," said Aloisio Villeth Lemos, a broker with
Agora Corretora in Rio de Janeiro.
    Banking shares also weighed on the Bovespa after
fourth-quarter profit at Banco Santander Brasil SA 
disappointed investors on Thursday, with interest income falling
to the lowest level in a year, and fee income below
expectations. 
    Shares of Banco Santander Brasil fell 1 percent, while
state-controlled rival Banco do Brasil dropped 1.65
percent.
    Brazil's Bovespa index is set to close the session with a
monthly decline of more than 2 percent, compared with a rise of
more than 5 percent in the S&P 500 index and a 4.5
percent jump in Mexico's IPC index.
    Fears over government intervention in the economy, energy
rationing, mediocre economic growth and high inflation have
soured many investors on Brazilian stocks, said Clodoir Vieira,
chief economist with brokerage Souza Barros in Sao Paulo.
    "February will be a very tough month. The outlook will
depend heavily on corporate results, but I think it should be
better than January," Vieira said. 
    Mexico's IPC index dropped 0.41 percent to 45,567.64
as shares of bottling group Femsa fell 0.67
percent.
    Shares of telecom Axtel rose 0.28 percent
after it said on Wednesday that it has launched pay-television
services in an effort to lure clients and boost revenue.
 
    Chile's IPSA index slipped 0.15 percent to 4,534.81.
    Shares of electricity generator Endesa Chile 
dropped 0.5 percent after the company reported a 47.6 percent
drop in 2012 net profit from the year earlier. 
  
    Latin America's key stock indexes at 1438 GMT:
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,920.66      0.15      3.08
                                                   
 Brazil Bovespa               59,448.02      0.19     -2.47
                                                   
 Mexico IPC                   45,567.64     -0.41      4.26
                                                   
 Chile IPSA                    4,534.81     -0.15      5.43
                                                   
 Chile IGPA                   22,096.05     -0.06      4.87
                                                   
 Argentina MerVal              3,462.42     -0.22     21.31
                                                   
 Colombia IGBC                14,985.81     -0.06      1.83
                                                   
 Peru IGRA                    21,316.19      0.05      3.33
                                                   
 Venezuela IBC               496,126.16      0.27      5.24
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