EMERGING MARKETS-Brazil stocks collapse to more than 4-year low

Fri Jun 21, 2013 5:18pm EDT

Related Topics

* Bovespa pulls back from Thursday's late correction
    * Bargain-hunters boost Mexico's bourse
    * Brazil Bovespa drops 2.4 pct, Mexico IPC up 1.38 pct

    By Asher Levine
    SAO PAULO, June 21 (Reuters) - Brazilian stocks tumbled on
Friday to the lowest in more than four years as investors
remained concerned about an end to the U.S. Federal Reserve's
bond-buying scheme, worried about the Brazilian economy and
anxious over a mass protest movement. 
    Mexican stocks recovered, however, adding 1.38
percent, as investors searched for bargains. Chile's IPSA
 traded flat. 
    Brazil's benchmark Bovespa stock index dropped 2.4
percent to close at levels not seen since April 2009. 
    On Thursday, regional markets nosedived a day after Fed
Chairman Ben Bernanke gave a roadmap for a winding down the U.S.
central bank's asset-buying scheme, which has drawn investors to
emerging markets by keeping U.S. interest rates low.
    Brazil's index staged a late-day recovery in the previous
session when bargain-hunters stepped in following sharp losses,
but failed to stage a similar rally on Friday.
    The selloff was "amplified" by protests that saw more than 1
million people in over 100 cities take to the streets, Barclays'
analyst Marcelo Salomon said in a research note, calling on the
government to address, among other things, some of the country's
economic weaknesses. 
    Brazil's current account deficit widened in May as the trade
balance remained weak, central bank data showed on Friday,
reflecting the deterioration of the country's external accounts
this year.
    * Shares of state-run oil company Petroleo Brasileiro SA
, known as Petrobras, fell 3.29 percent, contributing
most to the index's decline, while shares of rival OGX Petroleo
e Gas Participacoes SA, controlled by Brazilian
billionaire Eike Batista, lost 5.75 percent.
    * In Mexico, lender Grupo Financiero Banorte 
rose 2.88  percent, while mining firm Industrias Penoles
>PENOLES.MX> jumped 9.95 percent.
    Chile's IPSA index fell slightly, as a 3.34 percent
loss for forestry and paper company CMPC weighed. 
    
    Latin America's key stock indexes at 2104 GMT:
    
 Stock indexes                            daily %  year-to-da
                       Latest              change        te %
                                                       change
 MSCI LatAm                  3,018.60       -0.71      -20.52
                                                   
 Brazil Bovespa             47,056.04        -2.4      -22.80
                                                   
 Mexico IPC                 38,036.46        1.38      -12.97
                                                   
 Chile IPSA                  3,821.74       -0.12      -11.15
                                                   
 Chile IGPA                 19,162.59        0.08       -9.05
                                                   
 Argentina MerVal            3,070.86        0.75        7.59
                                                   
 Colombia IGBC              12,780.59       -1.40        0.91
                                                   
 Peru IGRA                  15,630.08       -0.74      -24.23
                                                   
 Venezuela IBC             972,606.00        1.87      106.31
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