* Brazilian companies posted avg 12.3 pct drop in Q1 income
* Expiration of share options leaves Bovespa volatile
* Brazil Bovespa falls 0.76 pct, Mexico IPC down 0.38 pct
By Danielle Assalve
SAO PAULO, May 20 Brazilian stocks dropped on
Monday as investors reevaluated their positions in local shares
following a disappointing first-quarter earnings season.
Mexico's IPC index dropped to its lowest level since
late November, while Chile's bourse rose for the first
session in four.
Brazil's benchmark Bovespa stock index fell its most
in five sessions, losing 0.76 percent to 54,744.20.
Traders said the index would remain volatile ahead of the
expiration of options on shares, set for 1 p.m. (1600 GMT).
Last week marked the close of earnings season for Brazilian
corporations. Average net income at 320 publicly-traded
Brazilian companies fell 12.29 percent in the first quarter from
the same period last year, according to financial consultancy
"The first quarter results were not good and in general have
not provided motivation for investors to buy shares," said
Ariovaldo Santos, an equities manager with brokerage H.Commcor
in Sao Paulo. "From here on out the market is going to be
tracking the macroeconomic data."
Earlier on Monday a central bank survey showed analysts have
trimmed their outlook for Brazilian economic growth in 2013 to
2.98 percent from 3 percent previously.
Mexico's IPC index fell its most in over a week,
losing 0.38 percent to 41,646.44.
Conglomerate Alfa fell 3.1 percent, contributing
most to the index's losses, while telecommunications firm
America Movil, controlled by billionaire Carlos Slim,
rose 0.8 percent.
America Movil's U.S. unit Tracfone Wireless has made a deal
to acquire the assets of U.S. mobile virtual network operator
Start Wireless Group, the firm said on Monday.
Chile's IPSA index snapped a three-day losing
streak, adding 0.16 percent to 4,265.75 as conglomerate Copec
rose 0.44 percent.
Latin America's key stock indexes at 1424 GMT:
Stock indexes daily % YTD %
Latest change change
MSCI LatAm 3,690.84 -0.4 -2.43
Brazil Bovespa 54,744.20 -0.76 -10.18
Mexico IPC 41,646.44 -0.38 -4.71
Chile IPSA 4,265.75 0.16 -0.83
Chile IGPA 20,944.63 0.14 -0.60
Argentina MerVal 3,687.79 -0.18 29.20
Colombia IGBC 13,313.24 -0.22 -9.53
Peru IGRA 16,579.16 0.22 -19.63
Venezuela IBC 763,341.75 0 61.92