* IMF, European policymakers meet to discuss Greek debt plan
* Commodities shares drop following previous week's gains
* Brazil Bovespa falls 1.37 pct, Mexico IPC edges higher
By Asher Levine and Danielle Assalve
SAO PAULO, Nov 26 Latin American stocks fell on
Monday, with uncertainty over the release of bailout funds for
Greece fueling profit-taking after region's shares posted their
biggest weekly gain in two months.
The MSCI Latin American stock index notched
its biggest daily loss in over a week, dropping 0.57 percent to
3,582.81 after having rallied 2.9 percent last week.
On Monday, a technical momentum indicator known as slow
stochastics flashed a "bearish cross" in overbought territory,
suggesting shares may fall further in coming days.
Oil producers drove Brazil's benchmark Bovespa index
to its first loss in three sessions, while Mexico's IPC index
Shares fell as euro zone finance ministers and the
International Monetary Fund meet to discuss the best way to cut
Greece's heavy debt load, a prerequisite for releasing a
critical bailout package to the country.
Uncertainty over the deal, along with lingering concerns
over the U.S. fiscal cliff, drove investors to book profits in
shares of the most widely-traded commodities firms.
"People generally think the fiscal cliff will be resolved
but more and more players believe the situation in Europe will
worsen before it improves," said Marcello Paixao, a partner at
Principia Capital Management in Sao Paulo.
Brazil's benchmark Bovespa stock index dropped its
most in over a week, losing 1.37 percent to 56,782.67.
Shares of state-controlled oil company Petrobras
lost 1.7 percent after the company said on Monday that output of
petroleum and natural gas fell for a fifth straight month in
October compared with a year earlier.
Rival oil producer OGX Petroleo e Gas Participacoes SA
, controlled by Brazilian billionaire Eike Batista,
lost 4.1 percent, returning part of the over 7 percent gains it
posted last week while preferred shares of iron-ore miner Vale
shed 1.25 percent.
"There has been a withdrawal of Brazil stocks from Latin
America-dedicated funds in recent months," Paixao added. "If not
'market weight,' Brazil is clearly 'underweight' in many
portfolios due to the combination of weak corporate results and
government intervention in the private sector."
Shares of Centrais Eletricas Brasileiras SA,
better known as Eletrobras, rose 6 percent as investors
struggled to arrive at a stable price for the stock following a
Eletrobras shares plunged nearly 50 percent this month on
expectation that a plan for hydro dam concession renewal and
related power-rate cuts will slash revenue, profit and
Still, the company plans to bid for new electricity
generation and transmission rights, a source close to the
company told Reuters on Monday.
Shares of state-controlled Banco do Brasil SA
rose 3.4 percent after the bank said on Monday that it will sell
shares in a newly-formed insurance and pension unit in a move to
tap growth in a fast-growing industry.
"It's a positive thing as the insurance sector is expanding
strongly in Brazil and Banco do Brasil has a large client base,"
said Henrique Florentino, an analyst with Um Investimentos in
Sao Paulo, who highlighted the benefits of a capital injection
in the company.
Mexico's IPC index edged 0.18 percent higher as a 1
percent gain by conglomerate Alfa helped offset a 0.4
percent drop in shares of telecommunications firm America Movil
Shares of plastic pipe maker Mexichem rose 1.2
percent after the company said on Friday that shareholders had
approved a dividend of 0.48 peso per share.