EMERGING MARKETS-Mexico stock market drops most in month on telecoms
* Telecoms reform bill pressures America Movil, Televisa * Bovespa volatile ahead of share options expiration * Mexico IPC down 0.96 pct, Brazil Bovespa falls 0.3 pct By Asher Levine SAO PAULO, March 13 (Reuters) - Mexican stocks fell their most in a month on Wednesday as investors continued to sell off telecommunications shares following a recent government proposal aimed at stoking greater competition in the sector. Brazil's benchmark Bovespa index edged lower though swung widely through the session as investors positioned for Monday's expiration of share options. Mexico's IPC index dropped for the third straight session, losing 0.96 percent to 43,545.21, the biggest percentage drop since Feb. 13, as shares of telecommunications firm America Movil, controlled by the world's richest man, Carlos Slim, fell 3.7 percent. America Movil shares have lost over 9 percent this week after Mexico's government issued a proposal on Monday that would allow increased foreign ownership of media and phone companies and give regulators the power to make players controlling more than 50 percent of the market sell assets. The proposal also led to a drop in shares of broadcasting giant Grupo Televisa, which fell 1.6 percent on Wednesday. Fund managers and traders said uncertainty over how the reforms will be implemented could put further pressure on the share prices of both companies, which currently dominate their respective markets. Brazil's Bovespa index fell for the third session in four, losing 0.3 percent to 58,032.79. Iron-ore mining firm Vale SA dropped 1.5 percent, contributing most to the index's losses, though state-run oil producer Petroleo Brasileiro SA, known as Petrobras, rose 1.3 percent. "The expiration of options on Monday is weighing on the index a bit," said Hamilton Alves, a senior analyst with BB Investimentos in Sao Paulo. "That is leaving things quite volatile, especially Vale and Petrobras, due to the intense fight between those who are either long or short on the shares." Shares of planemaker Embraer SA rose 2 percent after the company posted a bigger-than-expected jump in operating profit late Tuesday, boosted by a more favorable exchange rate and lower payroll taxes. "At the end of 2011 we had few people recommending (Embraer)shares," said Joao Pedro Brugger, an analyst with Leme Investimentos in Florianopolis, Brazil. "In fact we saw good results, the more stable exchange rate helps the predictability of the company's performance, and it has showed itself as a good investment." Chile's IPSA index lost 0.34 percent to 4,490.88, with industrial conglomerate Copec down 1 percent and contributing most to the index's losses. Latin America's key stock indexes at 1503 GMT: Stock indexes daily % YTD % Latest change change MSCI LatAm 3,891.67 -0.25 2.73 Brazil Bovespa 58,032.79 -0.3 -4.79 Mexico IPC 43,545.21 -0.96 -0.37 Chile IPSA 4,490.88 -0.34 4.41 Chile IGPA 21,974.83 -0.29 4.29 Argentina MerVal 3,395.72 0.27 18.97 Colombia IGBC 14,449.98 -0.23 -1.81 Peru IGRA 20,119.97 -0.49 -2.47 Venezuela IBC 633,467.19 0.28 34.37
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