EMERGING MARKETS-Oil producers drive Brazil stock index lower

Mon Feb 4, 2013 6:28pm EST

Related Topics

* Petrobras weakens ahead of earnings, report beats
estimates
    * OGX January production numbers disappoint
    * Brazil Bovespa falls 1.28 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 1.28 percent.
    Shares of state-controlled oil company Petroleo Brasileiro
SA, known as Petrobras, fell 2.49 percent ahead of
its earnings results, which analysts thought would be weak due
to soaring costs.
    But Petrobras earnings beat estimates, with the firm saying
after market close that fourth-quarter net profit rose 53
percent on higher fuel prices, lower taxes and financial gains. 
 
    Earlier, data showed Brazil's oil and gas output fell for
the ninth straight month in December, with Petrobras output down
on declining production from mature fields despite the company's
$237 billion five-year expansion plan. 
    Shares of rival oil firm OGX Petroleo e Gas Participacoes SA
, controlled by Brazilian billionaire Eike Batista,
fell 3.13 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 3.71
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 slipped 0.13 percent as shares of
retailer Falabella fell 1.61 percent while Banco
Santander Chile slid 0.55 percent.
        
    Latin America's key stock indexes at 1407 GMT:
 Stock indexes                           daily %    YTD %
                         Latest           change   change
 MSCI LatAm                    3,938.09    -1.05     3.69
                                                  
 Brazil Bovespa               59,575.66    -1.28    -2.26
                                                  
 Mexico IPC                   45,768.49   Closed     4.72
                                                  
 Chile IPSA                    4,561.91    -0.09     6.06
                                                  
 Chile IGPA                   22,191.86    -0.13     5.32
                                                  
 Argentina MerVal              3,428.69    -2.91    20.12
                                                  
 Colombia IGBC                15,136.05     0.17     2.86
                                                  
 Peru IGRA                    21,641.70    -0.73     4.91
                                                  
 Venezuela IBC               494,130.13        0     4.81
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California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

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