* Lack of accord on Greece aid package saps risk appetite
* Brazil's Eletrobras plunges on license renewal worries
* Brazil Bovespa falls 0.35 pct, Mexico IPC little changed
By Asher Levine
SAO PAULO, Nov 21 Latin American stocks were
choppy on Wednesday as investors remained jittery over
negotiations to release emergency aid to Greece, while Brazil's
state-controlled electric utility Centrais Eletricas Brasileiras
SA weighed on the Bovespa index.
The MSCI Latin American stock index fell for
the second straight session, losing 0.33 percent to 3,540.02.
Investor attention remained focused on the euro zone debt
crisis after international lenders failed to agree during
overnight talks in Brussels on how to make the country's debt
"The lack of an accord left the market a bit apprehensive in
the beginning," said Silvio Campos, an economist with Tendencias
Consultoria in Sao Paulo, adding that declarations of confidence
by French and German policymakers that a deal would be reached
helped avoid deeper losses.
Brazil's benchmark Bovespa stock index slipped 0.35
percent to 56,255.64 after a choppy open as trading resumed
following a national holiday on Tuesday.
Shares of Centrais, known as Eletrobras
, fell more than 16 percent on investor
concerns that an expected renewal of the company's concessions
at sharply lower rates would lead to steeper losses.
Eletrobras' board recommended that shareholders accept a
government offer to immediately renew concessions expiring
between 2015 and 2017 in exchange for lower power rates. That
could lead utility revenue to fall as much as 30 percent in 2013
compared with 2012, Barclays analysts led by Francisco Navarrete
wrote in a report to investors on Monday in which they cut their
price target on the shares to 1 real.
"There are still some uncertainties though all signs point
to the company following the government's plan and analysts are
converging on what the negative effects of the changes will be
on the company," Tendencias' Campos said.
Eletrobras preferred shares have lost nearly 56 percent of
their value since Brazil's government announced the concession
renewal terms on Sept 11.
"The situation is becoming priced in by the market and it
could fall even further," Campos added.
Mexico's IPC index remained little changed at
Data on Wednesday showed Mexican retail sales rose more than
expected in September, though retail stocks showed little
reaction to the news, with shares of Wal-Mart de Mexico SAB
and Grupo Elektra SA near flat.
Chile's IPSA index dropped for a second consecutive
session, losing 0.45 percent to 4,160.87.
Fertilizer, lithium and iodine producer Soquimich Comercial
SA contributed most to the index's losses after it
reported third-quarter income late on Tuesday that fell slightly
below analysts' expectations.
Latin America's key stock indexes at 1504 GMT:
Stock indexes daily % YTD %
Latest change change
MSCI LatAm 3,540.02 -0.33 -1.4
Brazil Bovespa 56,255.64 -0.35 -0.88
Mexico IPC 41,202.84 0.05 11.13
Chile IPSA 4,160.87 -0.45 -0.40
Chile IGPA 20,474.60 -0.33 1.71
Argentina MerVal 2,299.16 0.15 -6.64
Colombia IGBC 14,206.84 0.39 12.17
Peru IGRA 20,133.32 -0.29 3.39
Venezuela IBC 383,877.50 0 228.00