EMERGING MARKETS-Brazil stocks fall off high, Mexico dips

Thu Oct 17, 2013 5:17pm EDT

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MEXICO CITY, Oct 17 (Reuters) - Stocks in Brazil fell from a
4-1/2 month high on Thursday after minutes from the central
bank's last meeting suggested policymakers will keep hiking
interest rates, which could hurt growth and company sales.
    Brazilian stocks have climbed back from a four-year low hit
in July on bets that the worst of an economic slowdown has
passed. Meanwhile, weak growth in Mexico has dragged stocks
there off record highs seen early this year. 
    * Brazil's Bovespa index fell 1.1 percent, according
to preliminary closing data, pulling back after six straight
session of gains from its highest since late May.
    * Central bank minutes suggested policymakers in Brazil
could hike the country's benchmark rate by another 50 basis
points in November to 10.0 percent. Brazil is struggling with
high inflation even as growth remains sluggish. 
    * Shares of OGX Petróleo e Gás Participações SA 
sank nearly 15 percent, preliminary data showed. The stock had
risen sharply in the past two days on hopes of an imminent cash
injection as part of a restructuring plan.
    * Brazil's top retailer, Grupo Pão de Açúcar,
fell about 0.8 percent even after its third-quarter earnings
beat analyst forecasts and jumped 70 percent due to robust sales
growth and streamlined operations. 
    * A Reuters poll showed analysts slightly lifted their
growth forecast for Brazil in 2013 to 2.5 percent from 2.3
percent in July, but they slashed the outlook for 2014 to 2.4
percent from a previous outlook of 3 percent. 
    * Weighing on stocks across Latin America were concerns
about the economic impact from a 16-day government shutdown in
the United States, one of the region's top trading partners, and
the prospect of another nasty U.S. budget battle early in 2014.
    * Mexico's benchmark IPC index fell 0.39 percent as
billionaire Carlos Slim's telecom America Movil 
dropped 1.21 percent after the head of the Dutch telecoms group
KPN said the Mexican firm might still make a bid to
take over KPN. America Movil rose on Wednesday after it said it
pulled its offer for the Dutch firm. 
    * A Reuters poll on Thursday showed analysts cut their
growth outlook for Mexico to 1.3 percent this year, down sharply
from 3.8 percent in 2012, and less than half a 2.9 percent rate
forecast in July. 
        Latin America's key stock indexes at 2100 GMT:
    
 Stock indexes                       daily %    YTD %
                                      change   change
                          Latest              
 MSCI LatAm                3,475.44     0.34    -8.49
                                              
 Brazil Bovespa           55,358.13     -1.1    -9.18
                                              
 Mexico IPC               40,199.47    -0.39    -8.02
                                              
 Chile IPSA                3,823.21    -0.86   -11.12
                                              
 Chile IGPA               18,848.13    -0.77   -10.55
                                              
 Argentina MerVal          5,386.17     2.46    88.70
                                              
 Colombia IGBC            14,326.59     0.20    -2.65
                                              
 Peru IGRA                15,734.01     1.25   -23.73
                                              
 Venezuela IBC            1,883,507    -0.61   299.52
                                .57
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