* Bovespa hovers near 62,000 for more than a week
* Shares of Grupo Oi plunge on CEO switch
* Brazil's Bovespa down 0.34 pct, Mexico IPC up 0.21 pct
By Danielle Assalve
SAO PAULO, Jan 22 Brazilian stocks dipped on
Tuesday, dragged down by losses in the country's
telecommunications firm Oi, and Mexico edged up to a record
high, while traders pointed to technical barriers that could
Brazilian shares first rose after data showed German analyst
and investor morale in January hit the highest level in more
than 2-1/2 years, but the benchmark Bovespa index
quickly reversed gains as it neared the 62,000 point level.
The index ended the day down 0.34 percent at 61,692.29. The
index had already risen above 62,000 twice this month only to
fall back below. Analysts pointed to key resistance levels at
62,300 and the Bovespa's year-high of 63,470.
Brazil's stock market has lagged other major markets such as
Mexico as well as growing markets like Colombia, with investors
rattled by a slowdown in Latin America's top economy.
Brazil's Bovespa rose just over 7 percent in 2012 compared
to a nearly 18 percent gain in Mexico's main index over the same
"The market wants to see a better year, but we are not
seeing many bigger bets on the stock market," said economist
Daniel Cunha, at XP Investimentos in Sao Paulo.
Monday's holiday in the United States and an upcoming market
holiday in Brazil on Friday have kept trading volumes down.
"As soon as this passes and volume returns to normal levels,
the market will be able to break the resistance and head for a
short-term quick rally towards 63,500 points," said Daniel
Marques, an analyst with Agora Corretora in Rio de Janeiro.
Preferred shares of Grupo Oi SA, Brazil's biggest
fixed-line telephone company, plunged 7.93 percent after the
company ousted Chief Executive Francisco Valim..
Shares of Cyrela Brazil Realty SA fell 2.7
percent after the company said late Monday that fourth-quarter
sales declined 29 percent from the same period a year ago.
Mexico's IPC index rose 0.21 percent to close at an
all-time high of 45,320.30 points as shares in billionaire
Carlos Slim's America Movil, one of the world's
biggest telecommunications firms, rose 1.16 percent.
Nonetheless, technical momentum indicators of the IPC are
pointing to overbought levels that could push investors to take
Traders in Mexico said the market's current high could tempt
investors to take profits, although prospects that Mexico could
cut interest rates this year could help limit any drop.
Mexico's central bank held borrowing costs steady last week,
but said it could cut interest rates if inflation continues to
cool and economic growth flags, dropping its recent threat to
Mexico's top broadcaster Grupo Televisa rose
0.75 percent after announcing plans on Monday to increase its
sports coverage this year and develop an English-language
channel with Univision and ABC News.
Latin America's key stock indexes at 23:15 GMT:
Stock indexes daily % YTD %
Latest change change
MSCI LatAm 3,937.12 0.18 3.67
Brazil Bovespa 61,692.29 -0.34 1.21
Mexico IPC 45,320.30 0.21 3.69
Chile IPSA 4,535.38 0.18 5.44
Chile IGPA 22,078.17 0.21 4.78
Argentina MerVal 3,306.20 1.71 15.83
Colombia IGBC 14,821.88 0.29 0.72
Peru IGRA 21,625.27 -0.56 4.83
Venezuela IBC 482,883.50 -0.3 2.43