EMERGING MARKETS-Latam stocks fall on euro zone growth worries

Thu Feb 14, 2013 10:07am EST

Related Topics

* Euro zone economy shrinks more than expected in Q4
    * Grupo Modelo jumps after AB Inbev revises deal
    * Brazil Bovespa falls 0.65 pct, Mexico IPC down 0.14 pct

    By Asher Levine and Danielle Assalve
    SAO PAULO, Feb 14 (Reuters) - Latin American stocks fell on
Thursday after data showed the euro zone's economy shrank more
than expected in the fourth quarter, adding to concerns over
global economic growth and sapping demand for riskier
investments.
    Commodities firms contributed most to a fall in Brazil's
benchmark Bovespa index. Mexico's IPC index 
slipped for the fourth straight session, though shares of brewer
Grupo Modelo surged.
    Economic output in the euro zone fell by a
worse-than-expected 0.6 percent in the fourth quarter from the
third and the region's two largest economies, France and
Germany, both contracted more than analysts had predicted.
 
    Worries over global economic growth tend to weigh on Latin
American equities as investors turn towards safe-haven assets
such as the U.S. dollar.
    "The main concern of investors is trying to figure out if
the decline in Europe's economy has already reached bottom, and
the numbers are showing that we will still suffer a bit more in
2013," said Raffi Dokuzian, a director with CGD Securities in
Sao Paulo.
    Brazil's Bovespa stock index fell for the second straight
session, losing 0.65 percent to 58,027.96.
    If the index closes below a technical support level at
58,000 points, it may drop to a stronger support level at 55,100
points, according to an investor note from Itau Corretora.
    Shares of Brazil's most widely-traded commodities exporters
contributed most to the index's decline, with iron-ore mining
firm Vale SA slipping 1.7 percent and
state-controlled oil company Petroleo Brasileiro SA,
known as Petrobras, falling 0.4 percent.
    Local stocks with high liquidity tend to attract foreign
investors looking for exposure to Latin American equities, with
their performance often tracking global risk appetite.
    "Negative news from abroad tends to have more of an impact
on our market than positive news," said Luiz Roberto Monteiro, a
trader at brokerage Renascença in Sao Paulo. "When the news is
positive, investors tend to overlook it and focus on the
problems we have at home."
    Mexico's IPC index fell slightly, losing 0.14 percent
to 44,032.45 as shares of heavily-weighted telecommunications
firm America Movil dropped 0.78 percent.
    The IPC was supported, however, by a surge in shares of
brewing company Grupo Modelo. The shares rose over 4 percent
after Anheuser-Busch InBev, the world's largest brewer,
said it revised the terms of its $20.1 billion takeover of the
company to overcome U.S. government objections. 
    Chile's IPSA index fell its most in three weeks,
losing 0.27 percent to 4,602.19.
    Shares of retailer Falabella dropped 0.64 percent,
contributing most to the index's losses, while Banco de Chile
 slid 0.76 percent.
    Shares of airline group LATAM were little-changed
after the company said on Wednesday that its passenger traffic
rose 6.3 percent in January versus a year ago. 

    Latin America's key stock indexes at 1437 GMT:
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,872.64     -0.32       2.3
                                                   
 Brazil Bovespa               58,027.96     -0.65     -4.80
                                                   
 Mexico IPC                   44,032.45     -0.14      0.75
                                                   
 Chile IPSA                    4,602.19     -0.27      6.99
                                                   
 Chile IGPA                   22,352.55      -0.2      6.09
                                                   
 Argentina MerVal              3,296.06     -0.35     15.48
                                                   
 Colombia IGBC                15,018.65     -0.27      2.06
                                                   
 Peru IGRA                    21,568.74      -0.2      4.55
                                                   
 Venezuela IBC               582,230.88         0     23.50
FILED UNDER:
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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