EMERGING MARKETS-Brazil stocks fall as oil firms and banks slip

Wed Feb 6, 2013 10:16am EST

Related Topics

* Petrobras falls after analysts lower outlook on shares
    * Bovespa testing key support level at 59,100 points
    * Brazil Bovespa falls 0.97 pct, Mexico IPC down 0.25 pct

    By Asher Levine and Danielle Assalve
    SAO PAULO, Feb 6 (Reuters) - Brazilian stocks fell for the
third straight session on Wednesday as oil companies and banks
declined.
    Brazil's benchmark Bovespa stock index lost 0.97
percent to 58,866.22 points, falling below its 125-day simple
moving average, a support level the index has not closed below
in over two months.
    Shares of state-controlled oil company Petroleo Brasileiro
SA, known as Petrobras, fell 1.8 percent,
contributing most to the index's decline, after Jefferies &
Company analysts cut their recommendation on the stock to "hold"
from "buy" and Société Générale reduced their price target on
Petrobras' American Depositary Receipts.
    Petrobras shares are down over 4 percent this week on
concerns over excessive debt and cost pressure at the company.
 
    "Commodities firms, large banks, homebuilders...they are all
weak, and that is a trend we've been seeing for a few weeks,"
said Daniel Marques, an analyst with Agora Corretora in Rio de
Janeiro, adding that the Bovespa risked breaking a key support
level at 59,100 points on Wednesday. 
    "Today is just more of the same," he added.
    Shares of Itaú Unibanco Holding SA, Brazil's
largest non-government bank, fell 2 percent as sellers took
advantage of Tuesday's 2.5 percent gain following the release of
fourth-quarter earnings to take profits on the shares.
    Itau Chief Executive Officer Roberto Setubal told investors
in a conference call on Wednesday that he sees interest margins
growing at a "slow pace," and that he is confident bad-loan
provisions will stabilize this year. 
    Rival lenders Banco Bradesco SA and
state-controlled Banco do Brasil fell 1.6 percent and
0.8 percent, respectively.
    "Those who have held stocks for a long time in good
companies aren't seeing the stocks rise," said Ariovaldo Santos,
a broker with H.Commcor in Sao Paulo. "People are losing
interest in the market. It is contributing to a lack of a trend
one way or the other."
    Mexico's IPC index slipped for the second straight
session, losing 0.25 percent to 45,574.47 points.
    Telecommunications firm America Movil, controlled
by billionaire Carlos Slim, fell 0.32 percent, contributing most
to the index's fall, while mining firm Grupo Mexico
 dropped 0.34 percent.
    Chile's IPSA index eased off a recent rally, falling
0.13 percent to 4,575.22, its biggest daily drop in nearly two
weeks.
    Industrial conglomerate Copec fell 0.6 percent,
while retailer Falabella dropped 0.45 percent.
    
    Latin America's key stock indexes at 14:40 GMT:
    
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,909.49      -0.7      3.67
                                                   
 Brazil Bovespa               58,866.22     -0.97     -3.42
                                                   
 Mexico IPC                   45,574.47     -0.25      4.28
                                                   
 Chile IPSA                    4,575.22     -0.13      6.37
                                                   
 Chile IGPA                   22,250.83     -0.12      5.60
                                                   
 Argentina MerVal              3,308.23     -1.47     15.90
                                                   
 Colombia IGBC                15,212.48      0.12      3.37
                                                   
 Peru IGRA                    21,693.35     -0.17      5.16
                                                   
 Venezuela IBC               555,050.44      2.45     17.74
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