EMERGING MARKETS-Brazil stocks fall as Petrobras weighs

Tue Feb 5, 2013 5:13pm EST

Related Topics

* Itau rises on better outlook for handling bad loans
    * Petrobras falls on debt, dividend cut, cost concerns
    * Brazil Bovespa down 0.22 pct, Mexico IPC down 0.18 pct

    By Danielle Assalve
    SAO PAULO, Feb 5 (Reuters) - Brazilian stocks closed
slightly lower on Tuesday after state-oil giant Petrobras cut
its common-share dividend following weak results.
    Mexico's IPC index fell for the third session in
four, while Chile's bourse was up just under half a
percent. 
    Brazil's benchmark Bovespa stock index ended the day
down 0.22 percent at 54,444.97 points.
    Petrobras' worst annual result in eight years prompted it to
cut its common-share dividend on Tuesday as it seeks to preserve
cash to maintain investments as fuel and refining losses mount.
 
    Common shares in the company fell 8.29 percent -
their biggest daily drop since June of last year - to their
lowest level since December 2005, while shares in competitor OGX
 dropped 6.22 percent, driving losses in the index.
    Preferred Petrobras shares rose, however, adding
0.44 percent. 
    "This shows a inability to actually get the company to
deliver and distribute dividend income", said analysts at XP
Investimentos in a report. 
    Tempering losses, shares of Ita├║ Unibanco Holding SA
, Brazil's second-biggest lender, rose more than 2
percent after the company reported a fall in loan delinquencies
on Tuesday and released a better-than-expected outlook for
bad-loan provisions for 2013. 
    Mexico's IPC index fell 0.18 percent to 45,688.12, as
shares of telecommunications firm America Movil,
controlled by billionaire Carlos Slim, dropped 1.98 percent.
    Chile's IPSA index was up 0.42 percent at 4,581.02
points, as a 1.74 percent loss by retailer Cencosud 
offset a 3.05 percent gain in rival Falabella.

    Latin America's key stock indexes at 2150 GMT:
    
 Stock indexes                                     % change
                              Latest              
                                                           
 MSCI LatAm                          3,937.01         -0.03
                                                  
 Brazil Bovespa                     59,444.97         -0.22
                                                  
 Mexico IPC                         45,688.12         -0.18
                                                  
 Chile IPSA                          4,581.02          0.42
                                                  
 Chile IGPA                         22,277.48          0.39
                                                  
 Argentina MerVal                    3,357.90         -2.06
                                                  
 Colombia IGBC                      15,194.72          0.39
                                                  
 Peru IGRA                          21,730.15          0.41
                                                  
 Venezuela IBC                     541,758.75          9.64
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