EMERGING MARKETS-Oil producers drive Brazil stock index lower
* Petrobras due to report results after market close * OGX January production numbers disappoint * Brazil Bovespa falls 1.29 pct, Mexico bourse closed By Asher Levine SAO PAULO, Feb 4 (Reuters) - Brazilian stocks slipped on Monday with shares of heavily weighted oil producers Petrobras and OGX falling on concerns over profit and production. Chile's bourse also dropped, for the first session in four, while Mexico's stock market was closed for a holiday. Brazil's benchmark Bovespa stock index fell for the first session in three, losing 1.29 percent to 59,574.15. Shares of state-controlled oil company Petroleo Brasileiro SA, known as Petrobras, fell 1.84 percent, contributing most to the index's losses. Petrobras is expected to release its fourth-quarter earnings results after the market closes on Monday. Analysts said rising sales and profit will be insufficient to fix growing cash-flow and debt problems brought on by soaring costs, rising imports and fuel subsidies. Shares of rival oil firm OGX Petroleo e Gas Participacoes SA , controlled by Brazilian billionaire Eike Batista, fell 2.65 percent after the company reported output that fell short of expectations in January. "The market is worried about the Petrobras results and concerns about mismanagement of the company are hurting the shares," said Pedro Galdi, chief strategist at SLW brokerage in Sao Paulo. "With OGX the concern is more that the company is not going to deliver on its promises." Shares of sanitation utility Cia de Saneamento Basico do Estado de S. Paulo SA, known as Sabesp, rose 1.5 percent after Bank of America Merrill Lynch analysts on Monday reiterated that the shares are their top pick for utilities in Latin America. Brazil's Bovespa is down over 2 percent this year, while Mexico's IPC index is up nearly 5 percent and Chile's IPSA index is up nearly 6 percent. "We used to be the investors' darling but now they are turning to other Latin American countries with stronger economies and better economic outlooks," said Debora Morsch, a partner with Zenith Asset Management in Porto Alegre, Brazil. "Here you have a negative situation, with inflation high and economic growth weak," Morsch said, adding that fears over government intervention in the private sector have left many foreign investors less confident in Brazil's market. Chile's IPSA index posted its biggest daily drop in over a week, losing 0.26 percent to 4,554.20. Shares of retailer Falabella fell more than 1 percent, contributing most to the index's losses, while Banco Santander Chile slid 1.46 percent. Latin America's key stock indexes at 1407 GMT: Stock indexes daily % YTD % Latest change change MSCI LatAm 3,936.62 -1.09 4.79 Brazil Bovespa 59,574.15 -1.29 -2.26 Mexico IPC 45,768.49 1.08 4.72 Chile IPSA 4,554.20 -0.26 5.88 Chile IGPA 22,170.65 -0.22 5.22 Argentina MerVal 3,537.06 0.15 23.92 Colombia IGBC 0.00 -100.00 -100.00 Peru IGRA 21,777.78 -0.1 5.57 Venezuela IBC 494,130.13 0 4.81
- Vice-principal of South Korea school in ferry disaster commits suicide |
- After Nevada ranch stand-off, emboldened militias ask: where next?
- New Russia sanctions threats as Ukraine stalemate goes on |
- Florida man charged with murdering son so he could play video games
- All 338 Korean students, teachers rescued from sinking ferry - school official