* Petrobras fuel price hike fails to encourage investors
* Brazil airline Gol falls on possible slot reallocation
* Brazil Bovespa falls 1.3 pct, Mexico IPC flat
By Asher Levine
SAO PAULO, Jan 30 Shares of state-controlled oil
firm Petrobras led Brazilian stocks lower on Wednesday after the
company announced a fuel price hike that left investors wanting.
Chile's IPSA index fell for the second straight
session while Mexico's bourse was little changed.
Brazil's benchmark Bovespa stock index lost 1.3
percent as shares of Petroleo Brasileiro SA, known as
Petrobras, fell their most in over six months.
Petrobras preferred shares plunged 4.55 percent after the
company announced late on Tuesday that it would increase
refinery gate prices for gasoline by 6.6 percent and diesel by
5.4 percent, starting Wednesday.
Brazil's government has held pump prices largely steady
since 2006 to control inflation but global crude prices have
roughly doubled over that period, leading Petrobras to sell
imported fuel at a loss.
Investors were largely disappointed by the size of the price
hike, especially after local newspaper O Estado de S. Paulo,
citing a government source with knowledge of the situation,
reported on Wednesday that further price adjustments in 2013 are
"practically off the table."
"The price rise didn't fix the problem, it just pushed it
further down the road," said Douglas Pinto, a broker with BGC
Liquidez in Sao Paulo. "With this being the only adjustment in
2013, the company will continue to deal with the effects of
Shares of Gol Linhas Aéreas Inteligentes SA,
Brazil's No. 2 airline, dropped 6 percent after a local news
magazine's website reported that the government could reallocate
slots at Sao Paulo's Congonhas airport and impose a price
ceiling on flights from the airport.
Press representatives from Brazil's civil aviation agency
said the government was reviewing the distribution of slots, but
that any changes would first go through a public hearing. The
agency denied any knowledge of a plan to impose limits on fares.
Mexico's IPC index was little-changed, edging 0.6
percent higher to 45,935.67 points. While the index is up over 5
percent this month, it has been unable to break technical
resistance at 46,000 points since Monday.
Supermarket chain Grupo Chedraui fell 0.6
percent, offsetting a 1.36 percent rise in shares of broadcaster
Chile's IPSA index slid 0.16 percent to 4,509.40 as
shares of Banco Santander Chile fell 2.07 percent.
Latin America's key stock indexes at 1502 GMT:
Stock indexes daily % YTD %
Latest change change
MSCI LatAm 3,921.37 -0.94 4.24
Brazil Bovespa 59,618.38 -1.3 -2.19
Mexico IPC 45,935.67 0.06 5.10
Chile IPSA 4,509.40 -0.16 4.84
Chile IGPA 21,991.41 -0.11 4.37
Argentina MerVal 3,475.92 0.16 21.78
Colombia IGBC 14,988.36 -0.31 1.85
Peru IGRA 20,992.23 0.25 1.76
Venezuela IBC 493,594.88 0 4.70