EMERGING MARKETS-Brazil stocks fall on weak commodities shares

Tue Jul 30, 2013 12:09pm EDT

Related Topics

* Petrobras, Usiminas, Vale lead Bovespa's fall
    * Fed meeting to yield insight into policy plans on
Wednesday
    * Brazil's Bovespa falls 0.73 pct, Mexico's IPC down 0.41
pct

    By Lucas Iberico-Lozada
    SAO PAULO, July 30 (Reuters) - Brazilian stocks fell for the
second session in a row on Tuesday, driven downward by shares of
commodity-related companies ahead of a monetary policy statement
by the U.S. Federal Reserve.
    Mexico's IPC index fell for the third session in
five, while Chile's benchmark bourse was on track to
complete a four-session slide.
    Brazil's benchmark Bovespa stock index extended its
move away from a technical resistance point just under 49,500
points, falling 0.73 percent to 48,851.02. Advances in bank
shares helped contain the index's losses.
    The U.S. Federal Reserve will conclude a two-day policy
meeting on Wednesday and is expected to detail its monetary
stimulus plans. The Fed's bond-buying program has held down U.S.
yields and pushed investors toward riskier assets such as
emerging market stocks. The prospect of less stimulus has fueled
selling in Latin American stocks.
    "If the Fed says stimulus will continue, then the market
will make a strong push forward," said Flavio Barros, an
executive at Grau Gestao de Ativos in Sao Paulo. "Without that
news, however, the market will continue to face resistance above
49,000 points."
    Leading the Bovespa's losses were shares of state-run oil
company Petroleo Brasileiro SA, known as Petrobras,
which fell 1.4 percent to extend a recent slide.
    Shares of steelmaker Usinas Siderugicas de Minas Gerais SA
, or Usiminas, fell 3 percent as investors trimmed
pocketed some of the gains made over the three previous
sessions.
    Losses on the Bovespa were contained by a 2.2-percent jump
in shares of Itau Unibanco Holding SA, Brazil's
largest bank by market share, as it posted better-than-expected
second-quarter earnings. 
    Mexico's IPC index backed away from a three-week high
for the second session in a row, falling 0.41 percent to
40,174.73 points as shares of telecommunications firm America
Movil and retail giant WalMart de Mexico 
fell 1 percent and 0.5 percent, respectively.
    On Monday, America Movil, controlled by billionaire Carlos
Slim, ended an agreement with Dutch telecommunications firm KPN
 to keep its holding in KPN below 30 percent, a signal
that Slim may move to take a controlling stake in the company.
 
    Chile's IPSA index fell 1.25 percent to 3,756.53
points on Tuesday, led by a 14 percent plummet in shares of
potash producer Sociedad Quimica y Minera de Chile SA
 . 
    The Santiago Stock Exchange halted trading in SQM after
Russia's Uralkali moved to dismantle the world's
largest potash cartel. 
         
    Latin America's key stock indexes at 1522 GMT:
    
 Stock indexes                Latest       Daily pct     YTD pct
                                              change      change
 MSCI Latam                    3,163.00        -0.83      -16.02
                                                      
 Brazil Bovespa               48,851.02        -0.73      -19.85
                                                      
 Mexico IPC                   40,174.73        -0.41       -8.08
                                                      
 Chile IPSA                    3,756.53        -1.25      -12.67
                                                      
 Chile IGPA                   18,700.68        -1.02      -11.25
                                                      
 Argentina MerVal              3,376.69        -0.22       18.30
                                                      
 Colombia IGBC                13,429.86         0.10       -8.74
                                                      
 Peru IGRA                    15,344.32         0.22      -25.62
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