EMERGING MARKETS-Brazil stocks slip on S&P warning

Fri Jun 7, 2013 1:18pm EDT

Related Topics

* S&P revises outlook on long-term Brazil sovereign debt
    * Brazil Bovespa falls 1.19 pct, Mexico IPC up 0.87 pct

    By Asher Levine and Danielle Assalve
    SAO PAULO, June 7 (Reuters) - Brazilian stocks fell on
Friday after Standard & Poor's warned investors on the country's
deteriorating fiscal fundamentals and slow economic growth.
    Mexico's IPC index rallied for a second day, while
Chile's bourse fell its most in two weeks.
    Standard & Poor's revised its outlook on long-term ratings
for Brazil's sovereign debt to negative from stable on Thursday,
giving equity investors pause. A weak domestic economy and
persistent inflation pressure has soured many foreign investors
on local equities in recent months, reflected in a 14 percent
drop in the benchmark Bovespa stock index so far this
year.
    In comparison, the S&P 500 index is up about 15
percent this year, while London's FTSE 100 is up nearly
9 percent.
    "The S&P decision is definitely negative though in some ways
it just reflected what everyone already knows," said Marcello
Paixao, a partner with Principia Capital Management in Sao
Paulo. 
    Paixao added that a widespread perception that the U.S.
Federal Reserve will slow its monetary stimulus program weighed
on the market in recent days, mostly due to the outlook for
fewer available funds destined for emerging markets.
    * Brazil's benchmark Bovespa stock index fell 1.19
percent to 52,257.79. The index has not closed below 52,500
points in over a year.
    * Shares of oil producers led declines, with state-run oil
company Petroleo Brasileiro SA, known as Petrobras,
down 1.3 percent and rival OGX Petroleo e Gas Participacoes SA
 falling 3.6 percent.
    * Shares of homebuilder Gafisa SA jumped in
opening trade after the company said it agreed to sell a 70
percent stake of its high-end Alphaville unit for 1.4 billion
reais ($654 million). The broader market selloff and
profit-taking led the shares to reverse gains later in the
session, however.
    * Mexico's IPC index rose for the second straight
session, adding 0.87 percent to 40,933.60.
    * Shares of telecommunications firm America Movil,
controlled by billionaire Carlos Slim, rose 1.33 percent,
contributing most to the index's rise, while bottling group
Femsa added 1.1 percent.
    * Chile's IPSA index slipped for the third straight
day, losing 0.78 percent to 4,136.50 as shares of retailer
Cencosud fell 1.9 percent.
    
    Latin America's key stock indexes at 1652 GMT:
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,430.02      0.02     -9.71
                                                   
 Brazil Bovespa               52,257.79     -1.19    -14.26
                                                   
 Mexico IPC                   40,933.60      0.87     -6.34
                                                   
 Chile IPSA                    4,136.50     -0.78     -3.83
                                                   
 Chile IGPA                   20,454.51     -0.62     -2.92
                                                   
 Argentina MerVal              3,450.31     -0.01     20.88
                                                   
 Colombia IGBC                13,355.87     -0.11     -9.24
                                                   
 Peru IGRA                    15,968.56      0.34    -22.59
                                                   
 Venezuela IBC               811,521.75         0     72.14
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.