EMERGING MARKETS-Homebuilders weigh on Brazil stocks, offset utilities' gains

Thu May 16, 2013 10:40am EDT

Related Topics

* Homebuilder shares drop on profit-taking
    * Eletrobras, Cemig rise after encouraging 1st-qtr results
    * Brazil Bovespa falls 0.4 pct, Mexico IPC down 0.19 pct

    By Asher Levine
    SAO PAULO, May 16 (Reuters) - Brazilian stocks fell for the
first session in three on Thursday as profit-taking in
homebuilder stocks offset a rise in electric utilities.
    Retailer Falabella boosted Chile's bourse. Mexico's
IPC index edged lower, weighed by drops in shares of
cement manufacturer Cemex and mining firm Grupo Mexico.
    Brazil's benchmark Bovespa stock index lost 0.4
percent to 54,718.99, as the first-quarter earnings reporting
season came to a close late on Wednesday.
    Analysts said the index should remain volatile ahead of the
expiration of options on shares, scheduled for Monday.
    Shares of state-led electric utility Centrais El├ętricas
Brasileiras SA, known as Eletrobras, spiked over 6
percent after the company reported a narrowed net loss of 36
million reais ($17.8 million) in the first quarter, compared
with a 10.5 billion real loss in the fourth quarter.
 
    Rival firm Cia Energ├ętica de Minas Gerais SA,
known as Cemig, rose 1 percent after first quarter profit beat
expectations. 
    Profit-taking in homebuilder stocks prevented the broader
index from advancing, however, with shares of PDG Realty SA
 down 4.2 percent and rival Rossi Residencial SA
 falling 3.4 percent. Rossi shares had gained over 10
percent in the previous session, while PDG shares had risen 5.3
percent.
    PDG shares were also affected by their exclusion from the
most recent MSCI Brazil stock index, announced late on Tuesday. 
    Brazil's Bovespa is on track to post its fifth straight
monthly loss in May as concerns over economic growth, regulatory
risk and weak corporate earnings sap investor confidence.
    "Earnings have been the big driver recently but we are now
past that, so people are going to be more focused on
macroeconomic data," said Larissa Gatti, an economist with
Corretora Souza Barros in Sao Paulo. "There is a crisis of
confidence in the government ... nothing has happened to give
more certainty to investors."
    Mexico's IPC index fell for the second straight
session, losing 0.19 percent to 41,823.67.
    Shares of cement manufacturer Cemex dropped 0.9
percent, contributing most to the index's loss, while mining
firm Grupo Mexico lost 0.6 percent. 
    Chile's IPSA index posted its biggest intraday rise
in over a week, adding 0.27 percent to 4,298.10.
    Shares of retailer Falabella gained for the second
straight session, rising 2.6 percent and contributing most to
the IPSA's rise. The company reported a jump in first quarter
profit earlier after market close on Tuesday. 
         
    Latin America's key stock indexes at 1413 GMT:
    
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,703.18     -0.32     -2.18
                                                   
 Brazil Bovespa               54,718.99      -0.4    -10.23
                                                   
 Mexico IPC                   41,823.67     -0.19     -4.31
                                                   
 Chile IPSA                    4,298.10      0.27     -0.08
                                                   
 Chile IGPA                   21,068.75      0.24     -0.01
                                                   
 Argentina MerVal              3,792.45      1.92     32.87
                                                   
 Colombia IGBC                13,300.82      0.26     -9.62
                                                   
 Peru IGRA                    17,117.72     -0.07    -17.02
                                                   
 Venezuela IBC               738,873.06         0     56.73
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