EMERGING MARKETS-Brazil stock rally flags, Mexico rebounds from low

Thu Apr 25, 2013 6:59pm EDT

* Vale shares rise after 1st-quarter earnings beat estimates
    * Santander, Banco do Brasil weigh on Brazil's Bovespa
    * Bovespa dips 0.04 pct, Mexico IPC rises 0.6 pct


    By Asher Levine and Roberta Vilas Boas
    SAO PAULO, April 25 (Reuters) - A recent rally in Brazilian
stocks lost steam on Thursday after shares failed to break a
resistance level for the second straight session, while Mexican
equities rebounded from a more than one-month low.
    Brazil's benchmark Bovespa stock index edged down
0.04 percent to end at 54,963.32 points. After rising for five
sessions in a row, the index failed to surmount the 55,550-point
level for the second day in a row.
    State-controlled lender Banco do Brasil fell 1.79
percent as investors become less optimistic about the outcome
for the IPO of its BB Seguridade insurance unit.
    "Many people were talking about 18 reais for the (BB
Seguridade) IPO, but now people are mentioning 16 reais," said
Luiz Roberto Monteiro, a broker with Renascenca in Sao Paulo.
    Bank of America analysts lowered their recommendation on
Banco do Brasil shares on Wednesday, citing the potential loss
of value and profits stemming from the IPO. 
    Banco Santander Brasil retreated 2.95 percent
after it reported a plunge in first-quarter earnings and rising
defaults. 
    State-owned oil firm Petrobras fell 1.29 percent
as it pulled back from a three-month high.
    Among gainers, iron ore mining firm Vale SA rose
1.4 percent after first-quarter earnings beat expectations.
 
    Shares of airline Gol Linhas Aereas rose 4.7
percent ahead of the pricing on Wednesday for the initial public
offering of its Smiles SA customer loyalty unit.
    Mexico's IPC index rose 0.6 percent to 42,547.47
points, recovering from its lowest close in the previous session
since March 19.
    Corn miller Gruma jumped 11.26 percent after
reporting a surge in first-quarter profit by nearly 150 percent
due to lower financing costs and a stock repurchase from U.S.
agribusiness major Archer Daniels Midland.
    Top retailer Wal-Mart de Mexico rose 2.55
percent off of a one-month low that it hit in the previous
session following its earnings earlier this week.
 
    
    Latin America's key stock indexes at 2220 GMT:
 Stock indexes                             Daily  YTD pct
                                Latest       pct   change
                                          change  
 MSCI Latam                    3,743.08     0.85    -1.44
                                                  
 Brazil Bovespa               54,963.32    -0.04    -9.83
                                                  
 Mexico IPC                   42,547.47      0.6    -2.65
                                                  
 Chile IPSA                    4,311.83    -0.03     0.24
                                                  
 Chile IGPA                   21,153.46        0     0.39
                                                  
 Argentina MerVal              3,685.62     2.28    29.13
                                                  
 Colombia IGBC                13,526.17     0.53    -8.08
                                                  
 Peru IGRA                    18,153.91     2.78   -12.00
                                                  
 Venezuela IBC               650,353.31     0.57    37.95
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