EMERGING MARKETS-Latam stocks slip on global growth concerns

Thu Feb 21, 2013 12:19pm EST

Related Topics

* Euro zone PMIs disappoint
    * Banco do Brasil, Gerdau buoy Brazil's Bovespa
    * Brazil Bovespa falls 0.67 pct, Mexico IPC down 0.65 pct

    By Asher Levine and Danielle Assalve
    SAO PAULO, Feb 21 (Reuters) - Brazilian stocks fell for the
seventh straight session on Thursday after data raised concerns
about the economic recoveries in the euro zone and the United
States.
    Mexico's IPC index fell for the second straight
session, while industrial conglomerate Copec weighed on
Chile's bourse.
    Brazil's benchmark Bovespa stock index fell 0.67
percent to 55,800.10, its lowest in nearly three months.
    Shares dropped on concern about global economic growth after
weaker-than-expected Purchasing Managers Index (PMI) data on
Thursday suggested the euro zone economy may contract in the
first quarter.
    The data led to a sell-off of Latin America's most widely
traded commodities exporters, such as state-controlled oil
company Petroleo Brasileiro SA, known as Petrobras,
and mining giant Vale SA, which lost 1.2 percent and
0.7 percent, respectively.
    Both companies tend to attract foreign investors looking for
exposure to Latin American equities, with their performance
often tracking global risk appetite.
    A disappointing outlook for the United States economy added
to the negative tone, after data showed the number of Americans
filing new claims for unemployment benefits rose last week and
consumer prices were flat in January.
    "The data abroad are very weak, especially in the euro
zone," said Aloisio Lemos, an analyst with Agora Corretora in
Sao Paulo. "The corporate results are behind the few gains that
we are seeing today."
    Shares of Banco do Brasil SA posted their biggest
intraday gain in over a month, rising 3.6 percent after
fourth-quarter profit beat analysts' expectations on Thursday.
 
    Shares of steelmaker Gerdau SA rose 1.5 percent
after the company cut its five-year investment plan by 17
percent on Thursday in the face of slumping profits.
 
    Mexico's IPC index dropped 0.65 percent to 44,010.80
points as shares of lender Grupo Financiero Banorte
 slipped 1.6 percent.
    Shares of retail giant Wal-Mart de Mexico fell
0.8 percent, while rival Grupo Chedraui slipped
0.27 percent. 
    Mexican retail sales eased more than expected in December,
the national statistics office said on Thursday, raising
concerns about internal demand. 
    Chile's IPSA index lost 0.92 percent to 4,500.79
points.
    Industrial conglomerate Copec lost 2.1 percent, contributing
most to the index's decline, while retailer Falabella 
dropped 1 percent.

    Latin America's key stock indexes at 1628 GMT:
    
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,780.61     -1.37      0.93
                                                   
 Brazil Bovespa               55,800.10     -0.67     -8.45
                                                   
 Mexico IPC                   44,010.80     -0.65      0.70
                                                   
 Chile IPSA                    4,500.79     -0.92      4.64
                                                   
 Chile IGPA                   21,980.66     -0.72      4.32
                                                   
 Argentina MerVal              3,148.04     -3.69     10.29
                                                   
 Colombia IGBC                14,691.91     -0.83     -0.16
                                                   
 Peru IGRA                    20,735.00      -0.4      0.51
                                                   
 Venezuela IBC               617,583.81      0.01     31.00
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A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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