EMERGING MARKETS-Brazil stocks choppy as earnings offset U.S. data

Thu May 9, 2013 10:54am EDT

Related Topics

* U.S. jobless claims fall to lowest in 5-1/2 years
    * Weak corporate earnings weigh on Brazil's Bovespa
    * Brazil Bovespa, Mexico's IPC little-changed

    By Asher Levine and Danielle Assalve
    SAO PAULO, May 9 (Reuters) - Brazilian stocks were choppy on
Thursday, as a string of weak corporate earnings results offset
encouraging labor market data in the United States.
    Both Mexico's IPC index and Chile's bourse 
were little-changed.
    Shares rose early after data showed U.S. jobless claims fell
to their lowest level in nearly 5-1/2 years last week,
supporting demand for the most widely-traded stocks.
    Disappointing corporate earnings weighed on Brazil's
benchmark Bovespa stock index, however, which traded at
55,752.42 points, a 0.09 percent drop from the previous
session's close. 
    The Bovespa has faced technical resistance near 56,800
points in recent sessions as a lack of long-term confidence in
the local market led investors to take advantage of short-term
gains.  
    "Markets abroad are at very high levels and that limits the
room we have for new advances," said Silvio Campos Neto, an
economist with Tendencias Consultoria in Sao Paulo. "We are in a
period of uncertainty, without big movements in the Bovespa in
either direction."
    State-run oil company Petroleo Brasileiro SA,
known as Petrobras, rose 0.3 percent, while Itaú Unibanco
Holding SA, Brazil's largest non-government bank,
added 0.6 percent.
    Local stocks with high liquidity, such as Petrobras and
Itau, tend to attract foreign investors looking for exposure to
Latin American equities, with their performance often tracking
global risk appetite.
    Weak corporate results limited the Bovespa's gains, however.
    Shares of Brazil's biggest electricity distributor 
Eletropaulo Metropolitana Eletricidade de São Paulo SA
 fell 1.55 percent after the company reported a slight
net loss in the first quarter. 
    Shares of homebuilder Brookfield Incorporacoes 
fell 4.3 percent after the firm posted a surprise first-quarter
net loss on Wednesday, citing cost overruns that have plagued
its performance in recent years. 
    Mexico's IPC index was little-changed at 42,110.88
points as a 2.45 percent gain by food producer Grupo Bimbo
 helped offset a 0.7 percent loss by telecoms firm
America Movil, controlled by billionaire Carlos Slim.
    Chile's IPSA index also traded nearly flat at
4,357.81 points, with a 0.3 percent gain by retailer Falabella
 offsetting a 0.7 percent decline by supermarket group
Cencosud.
    
    Latin America's key stock indexes at 1417 GMT:
    
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,803.53      0.16     -0.01
                                                   
 Brazil Bovespa               55,752.42     -0.09     -8.53
                                                   
 Mexico IPC                   42,110.88      0.02     -3.65
                                                   
 Chile IPSA                    4,357.81      0.04      1.31
                                                   
 Chile IGPA                   21,302.09      0.05      1.10
                                                   
 Argentina MerVal              4,013.42     -0.61     40.61
                                                   
 Colombia IGBC                13,294.74      0.18     -9.66
                                                   
 Peru IGRA                    17,552.02     -0.13    -14.92
                                                   
 Venezuela IBC               682,645.44         0     44.80
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