SAO PAULO, June 19 Brazil's Bovespa stock index
plummeted on Wednesday, with Mexico's IPC index also seeing a
sizeable fall, after the U.S. Federal Reserve laid out a
blueprint for how it could wind down its bond purchase program.
In a closely watched address, Federal Reserve Chairman Ben
Bernanke said the Fed's policy-setting committee sees a likely
reduction in the pace of purchases in 2013 if the economic
forecast comes in as expected. Purchases could end by the middle
of next year.
The region's emerging markets have provided a home for
investors looking for riskier, high-yielding places to house
their capital and any end to the Fed's massive $85 billion a
month asset-buying scheme would likely roil local markets.
* Brazil's benchmark Bovespa index dropped 3.18
percent to its lowest level since August 2011 as shares of
BM&FBovespa, the country's sole bourse, slid 6.95
percent following news that NYSE Euronext and Americas
Trading Group are seeking Brazilian regulatory approval to open
a new stock exchange.
* Oil producer OGX continued its precipitous
decline, falling 15.22 percent. A painful sell-off of OGX shares
has shaved more than 80 percent off the company, controlled by
Brazilian billionaire Eike Batista.
* Top commodity producers Vale and Petrobras
, among the index's most liquid stocks and thus the
most susceptible to external pressures like the Fed
announcement, lost 2.06 percent and 3.53 percent respectively.
* Mexico's IPC index fell 1.05 percent to its lowest
in nearly a year. Banking group Banorte dropped
2.51 percent, driving losses.
* Chile's IPSA index shed 0.68 percent to close at
3,947.11 points, with a 0.74 percent drop in shares of retailer
Latin America's key stock indexes at 2111 GMT:
Stock indexes daily % year-to-da
Latest change te %
MSCI LatAm 3,139.68 -3.5 -14.33
Brazil Bovespa 47,893.06 -3.18 -21.43
Mexico IPC 39,044.95 -1.05 -10.66
Chile IPSA 3,947.11 -0.68 -8.24
Chile IGPA 19,628.64 -0.63 -6.84
Argentina MerVal 3,070.86 0.75 7.59
Colombia IGBC 13,289.34 -0.65 4.92
Peru IGRA 16,561.75 -0.91 -19.72
Venezuela IBC 945,178.69 -0.46 100.49