* Brazil's Bovespa falls through key support
* Mexico's America Movil maintains rebound momentum
* Brazil Bovespa falls 0.7 pct; Mexico IPC up 0.5 pct
By Danielle Assalve
SAO PAULO, March 25 Brazilian stocks fell to an
eight-month low on Monday, hurt by losses in iron miner Vale,
while Mexican stocks rose as America Movil, billionaire Carlos
Slim's telecommunications firm, continued to rebound after a
Brazil's Bovespa index broke below a key support
near 55,000 points to close down 0.67 percent at 54,873.12, its
lowest level since late July last year.
After slumping more than 4 percent in March, the Bovespa
could be headed for a further fall of nearly 5 percent to the
next support level, around 52,200 points, which could tempt in
enough bargain hunters to halt the slide, chart watchers said.
Brazilian stocks have been hit by investor concerns over
government measures to revive growth in Brazil, Latin America's
top economy, even as inflation is creeping higher.
In addition, global appetite for riskier assets has been
dampened by the banking crisis in Cyprus, which has ignited a
new round of concerns about Europe's debt crisis.
"None of the news we have seen is bringing people back to
the market," said Clodoir Vieira, chief economist at brokerage
The Bovespa is on track for its third straight monthly loss
as foreign investors slashed their exposure to Brazilian stocks
by about 900 million reais in the five sessions ended Thursday.
Shares of Vale SA fell 1.69 percent and were the
biggest drag on the Bovespa.
Demand from China for iron ore, the raw material for steel,
is expected to rise by 50 million tonnes in 2013, but it will
not be enough to soak up a supply glut on the world market,
China's top economic planning agency said on Monday.
Vale, as well as other global miners, are counting on
sustained increases in iron ore demand from China to justify
massive expansion plans.
Common shares of telecommunications firm Grupo Oi SA
fell 3.78 percent after analysts at UBS Securities
trimmed their target price on the stock, citing skepticism over
Oi's "ability to take market share and grow earnings."
Mexico's IPC index rose 0.5 percent to 42,900.83
points, gaining ground for the fourth session in a row as the
index rallies back after falling early last week to lowest level
since late November.
America Movil gained 2.15 percent. Shares of
Slim's flagship firm have gained more than 10 percent from an
around four-year low hit on March 15.
Shares in America Movil, which dominates the Mexican phone
and Internet markets, were hammered due to concerns of tougher
regulation as local lawmakers prepared to vote on a sweeping
But the stock has bounced back even as lawmakers in Mexico's
lower house of Congress approved the bill last week. Brokerages
issued buy calls, saying that selling had been overdone for the
real growth prospects of Latin America's biggest phone and pay
TV provider. Investors are also eyeing the potential that
telecoms reform will pave the way for Slim to enter the Mexican
pay TV market.
Mexican copper miner Grupo Mexico shed 2.23
Latin America's key stock indexes at 2130 GMT:
Stock indexes daily YTD %
Latest % change
MSCI LatAm 3,724.49 -0.28 -1.93
Brazil Bovespa 54,873.12 -0.67 -9.97
Mexico IPC 45,278.06 0.5 3.60
Chile IPSA 4,409.77 -0.93 2.52
Chile IGPA 21,616.09 -0.74 2.59
Argentina MerVal 3,404.90 -0.73 19.29
Colombia IGBC 13,983.96 0.42 -4.97
Peru IGRA 19,744.55 -1.24 -4.29
Venezuela IBC 624,082.94 -0.79 32.38