* Brazil's Rousseff calls emergency energy meeting - report
* Energy utilities weigh on Brazil's Bovespa
* Bovespa falls 1.1 pct, Mexico IPC down 0.46 pct
By Asher Levine and Danielle Assalve
SAO PAULO, Jan 7 Brazilian stocks dropped on
Monday, with shares of electric utilities falling on concerns
over energy rationing in Latin America's largest economy.
Mexico's IPC index snapped a three-day rally, while
Chile's bourse was little changed.
Brazil's benchmark Bovespa stock index slipped for
the second straight session, losing 1.1 percent to 62,832.28.
An index of energy utility shares fell their most in
nearly four months, losing 3.6 percent after a local newspaper
reported on Monday that President Dilma Rousseff called an
emergency meeting with energy officials over potential shortages
due to low water levels at hydroelectric dams.
Officials at the presidential office told Reuters that no
meeting was scheduled.
Still, shares of state-controlled utility Centrais Eletricas
Brasileiras SA, known as Eletrobras, fell 3.92
percent, while those of rival Companhia Energetica de Minas
Gerais SA, known as Cemig, dropped nearly 5 percent.
"In truth, nothing is concrete yet, there are just
speculations on the possible meeting and what measures can be
taken," said Anderson Luz, a managing partner with InTrader in
Sao Paulo. "In the short-term it's a negative impact on the
shares, but we are not totally convinced that this is something
to worry about yet."
According to analysts at BTG Pactual Group, if Brazil steps
up the use of thermal plants to supplement hydraulic energy
sources, consumer and industrial rates could go up by as much as
Shares of steelmakers, which are major consumers of
electrical power, dropped. Shares of Companhia Siderurgica
Nacional fell 1.14 percent, while those of rival
Usinas Siderurgicas de Minas Gerais SA, known as
Usiminas, lost 2 percent.
Mexico's IPC index fell 0.46 percent, its biggest
drop in over a month, as profit-takers sold off shares following
a three-day rally that saw the index rise 2 percent.
A technical indicator known as the relative strength index
remained in "overbought" territory however, indicating stocks
may be due to fall further in coming sessions.
Telecommunications firm America Movil, controlled
by billionaire Carlos Slim, fell 0.9 percent, contributing most
to the index's loss, while broadcaster Grupo Televisa
slipped 1 percent.
Chile's IPSA index was little changed at 4399.36
points, as a 1.7 percent gain by electric utility AES Gener
offset a 3.5 percent drop by lender CorpBanca.
Data on Monday showed economic activity in the world's top
copper producer rose faster than expected in November, though
share gains were limited after Finance Minister Felipe Larrain
said economic growth eased in December.