EMERGING MARKETS-Mining giant Vale drives losses on Brazil stock market

Thu Apr 4, 2013 10:31am EDT

Related Topics

* Brazil court postpones decision on foreign tax case
    * Vale shares slip 2 pct
    * Brazil Bovespa falls 0.42 pct, Mexico IPC up 0.15 pct

    By Asher Levine
    SAO PAULO, April 4 (Reuters) - Mining firm Vale SA drove
losses in Brazilian stocks on Thursday after Brazil's Supreme
Court postponed a key tax ruling that could affect the company's
bottom line. 
    Mexico's IPC index edged higher, while Chile's bourse
 rebounded from its lowest closing level this year.     
   Brazil's Supreme Court late Wednesday put off a ruling that
will decide on how the foreign profits of companies like Vale
are treated by tax authorities. A ruling would determine whether
Vale, the world's No. 1 iron ore miner, must pay an estimated
$15.2 billion in taxes on earnings from its operations abroad.
 
   Vale's preferred shares had risen nearly 6 percent
on Wednesday as investors stepped up bets that a ruling would be
made in the company's favor.
    The stock returned some of those gains on Thursday, falling
2.05 percent and contributing most to benchmark Bovespa stock
index's 0.42 percent decline.
    "The fact that the decision was delayed explains some of the
drop we are seeing ... and we will continue to see volatility in
the shares until we have a firm decision on the case," said
Ricardo Zeno, a partner with brokerage AZ Investimentos in Rio
de Janeiro.
     The ruling will also impact other multinationals such as
steelmaker Cia Siderurgica Nacional and chemical
maker Braskem SA. Shares in both companies fell about
1 percent.
    Mexico's IPC index inched 0.15 percent higher to
43,782.28 points, as a 0.7 percent gain by retail giant Wal-Mart
de Mexico helped offset a 1.2 percent loss by
conglomerate Alfa.
     Shares of telecommunications firm America Movil,
controlled by billionaire Carlos Slim, were little-changed after
Mexico's antitrust watchdog said on Wednesday it would
temporarily suspend a $53 million fine it had levied against the
company's fixed-line unit. 
    Chile's IPSA index ended a three-day slide, rising
0.24 percent on Thursday to 4,357.92, as shares of conglomerate
Copc added 1.14 percent.
    The index had closed at its lowest level of the year on
Wednesday.

    Latin America's key stock indexes at 1404 GMT:
    
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,765.69     -0.01     -0.83
                                                   
 Brazil Bovespa               55,328.60     -0.42     -9.23
                                                   
 Mexico IPC                   43,782.28      0.15      0.17
                                                   
 Chile IPSA                    4,357.92      0.24      1.31
                                                   
 Chile IGPA                   21,404.01      0.17      1.58
                                                   
 Argentina MerVal              3,313.81      0.23     16.10
                                                   
 Colombia IGBC                13,771.88      0.39     -6.41
                                                   
 Peru IGRA                    19,579.19      0.15     -5.09
                                                   
 Venezuela IBC               632,736.88      0.08     34.21
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