EMERGING MARKETS-Brazil stocks edge down a day after strong gains
* Bovespa dips as lenders contain Vale, steel makers loss * Femsa's acquisition of Brazil bottler sends shares down * Brazil Bovespa down 0.14 pct, Mexico IPC down 0.6 pct By Lucas Iberico-Lozada SAO PAULO, Aug 23 (Reuters) - Brazilian stocks edged down on Friday, a day after the country's benchmark Bovespa index made its strongest daily gains in two weeks. Mexico's IPC index also edged down, while Chile's bourse snapped a seven-session slump. Late on Thursday, the Brazilian central bank announced a currency-intervention plan that will provide $60 billion worth of cash and insurance to the foreign exchange market by year end. Investors seemed to be taking time to weigh the measure's effect on stocks. "There's a certain stagnation in the market today," said Aloisio Villeth Lemos, an analyst at Agora Corretora in Sao Paulo. "This is a relatively calm market movement, particularly considering the recent market highs and the central bank announcement." The Bovespa fell 0.14 percent to 51,326.08. Among stocks falling in Sao Paulo were shares of Gerdau SA , the Americas' largest producer of long steel, which dipped 1.4 percent. Gerdau has benefited from the Brazilian real's recent depreciation, as about 60 percent of its costs are denominated in reais, while more than two-fifths of its revenue comes in dollars and other foreign currencies, Leonardo Correa, an analyst with HSBC Securities, said in a report. Shares of mining giant Vale SA, the world's largest iron-ore miner, fell 0.8 percent as investors moved to lock in gains of over 4 percent from the previous session. Lenders partially contained the index's losses, as Itaú Unibanco Holding SA, Brazil's largest non-government bank, and Banco Bradesco SA gained 1.5 and 0.9 percent, respectively. Mexico's IPC index fell 0.6 percent to 40,763.06, led by losses for bottler Femsa, whose shares fell 0.9 percent. Coca-Cola Femsa, a joint venture between Coca-Cola Co and Femsa, announced an all-cash purchase of Brazilian Coke bottler Companhia Fluminense de Refrigerantes on Thursday. Often, mergers and acquisitions lead to declines in stock price, on concerns of potential debt expenses that may be incurred in a takeover. Chile's IPSA index snapped a seven-session slump as the index added 0.31 percent to 3,627.28. Shares of LATAM Airlines Group and lender Banco Santander Chile gained 1.5 and 0.7 percent, respectively. Latin America's key stock indexes at 1449 GMT: Stock indexes daily % YTD % Latest change change MSCI LatAm 3,115.41 1.82 -19.44 Brazil Bovespa 51,326.08 -0.14 -15.79 Mexico IPC 40,763.06 -0.6 -6.73 Chile IPSA 3,627.28 0.31 -15.67 Chile IGPA 18,023.01 0.27 -14.46 Argentina MerVal 3,987.89 1.12 39.72 Colombia IGBC 13,639.95 -0.21 -7.31 Peru IGRA 16,626.88 0.18 -19.40 Venezuela IBC 1,274,887.34 0 170.43
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