EMERGING MARKETS-Mexico stocks lowest since November, Brazil down

Tue Mar 19, 2013 7:00pm EDT

Related Topics

* Brazil's miner Vale drops on China demand concerns
    * Mexican homebuilders tumble to record lows
    * Brazil Bovespa falls 1.07 pct, Mexico IPC down 1.28 pct


    MEXICO CITY, March 19 (Reuters) - Brazilian stocks fell on
Tuesday as iron miner Vale sank to a more than six-month low on
concerns Chinese demand could sag, while Mexican shares hit
their lowest since late November.
    Domestic concerns about Brazilian and Mexican stocks 
weighed sentiment down through the start of the year, but fears
of a financial meltdown in Cyprus has revived concerns about
Europe's debt crisis, sapping demand for riskier assets.
    Brazil's benchmark Bovespa stock index fell for the
fifth session in six, losing 1.07 percent to 56,361.24 points,
setting the index up to test a key support level around 56,000
points in the coming sessions if the slide continues.
    Vale SA, the world's biggest iron ore miner, 
fell 3.89 percent amid concerns global iron miners are ramping
up output, even as demand from China could flag. 
    "The prospect of a fall in the price of iron ore by factors
related to demand from China also ended up weighing in the
commodities sector as a whole," said analyst Rogerio Oliveira at
Icap Brazil in Rio de Janeiro.
    Concerns about sluggish domestic growth and rising inflation
have made Brazil's stock market one of the world's worst
performers in recent months, but it should make up ground in
2013 as the threat of government intervention eases and the
global economy recovers, a Reuters poll found. 
    Mexico's IPC index fell for the second straight
session to close down 1.28 percent, its lowest since Nov. 30 and
accumulating its worst two-session slide since late 2011.
    The shares of Mexican homebuilders tumbled to record lows on
Tuesday after a downgrade by brokerages deepened doubts the
battered industry will recover anytime soon. 
    Homex shares fell through a key support level, losing 15
percent after Goldman Sachs cut its rating on the stock to
"sell" on Monday, when local markets were closed for a holiday.
    Copper miner Grupo Mexico slipped 3.57
percent.
    The shares of billionaire Carlos Slim's America Movil
, Latin America's biggest telecommunications and pay TV
company, rose 1.55 percent as it bounced back from its lowest
level in nearly four years, hit on Friday.
    Before Tuesday's rebound, Slim's flagship company had shed
more than a quarter of its value since mid-February, when it
posted disappointing earnings. 
    The stock renewed its tumble last week when the new Mexican
government proposed a sweeping bill to loosen Slim's hold on the
telecommunications market. The lower house of Congress is
expected to vote this week on the bill.
    Despite a slump so far this year, Mexican stocks are seen
climbing back to record highs this year, according to a Reuters
poll, on optimism about a raft of economic reforms and a steady
flood of international capital from investors. 
    Chile's IPSA index snapped a six-day slide to rise
0.61 percent from a more than two-month low, helped by a 1.69
percent gain in the shares of retailer Falabella.
    
    Latin America's key stock indexes at 1523 GMT:
 Stock indexes                        daily %    YTD %
                             Latest    change   change
 MSCI LatAm                 3,772.73    -0.91    -0.66
                                               
 Brazil Bovespa            56,361.24    -1.07    -7.53
                                               
 Mexico IPC                42,060.61    -1.28    -3.76
                                               
 Chile IPSA                 4,431.04     0.61     3.01
                                               
 Chile IGPA                21,718.64     0.51     3.08
                                               
 Argentina MerVal           3,419.26    -0.79    19.79
                                               
 Colombia IGBC             13,958.84    -1.34    -5.14
                                               
 Peru IGRA                 19,815.95    -1.68    -3.94
                                               
 Venezuela IBC            630,791.06     0.23    33.80
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