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EMERGING MARKETS-Brazil stocks choppy as Petrobras gains offset PDG losses
July 8, 2013 / 3:12 PM / 4 years ago

EMERGING MARKETS-Brazil stocks choppy as Petrobras gains offset PDG losses

* Market holiday on Tuesday fuels volatility
    * Brazil central bank to announce interest rate decision
Wednesday
    * Brazil Bovespa falls 0.13 pct, Mexico IPC down 0.18 pct

    By Lucas Iberico-Lozada
    SAO PAULO, July 8(Reuters) - Brazilian stocks swung widely
on Monday as gains from state-run oil producer Petrobras offset
losses from homebuilders, banks and commodities firms.
    Mexico's IPC index edged lower following its worst
loss in over two weeks on Friday, while Chile's bourse 
gained for the second session in three. 
    Brazil's benchmark Bovespa stock index was down 0.13
percent at 45,151.35 after opening lower.
    Brazil's stock market will be closed on Tuesday for a local
holiday.
    "Market volatility is expected this week, considering the
holiday tomorrow, and many important events are on the agenda
for this week," said analyst Rudimar Jose Joner Filho of
Banrisul Corretora in Porto Alegre, Brazil. "The market is
nervous."
    Brazil's central bank will announce its latest interest rate
decision on Wednesday after the market close. All 57 economists
surveyed in a Reuters poll expect the bank to lift its benchmark
Selic rate on Wednesday evening, even at the risk
of cutting off a fragile economic recovery. 
    Shares of Petroleo Brasileiro SA, known as
Petrobras, rebounded slightly, rising 0.7 percent as
bargain-hunters picked up cheap shares after the stock posted
its biggest one-day loss in over a year on Friday due to worries
over a decline in global liquidity.
    Shares of homebuilder PDG Realty SA limited gains
in the Bovespa, falling 3.8 percent and hitting their lowest
price on record. 
    Citigroup analysts led by Paula Mello cut their
recommendation on PDG shares to "sell" from "neutral" on Monday,
citing a weaker macroeconomic outlook for Brazil and a potential
increase in sales cancellations. 
    Shares of airline Gol Linhas Aereas Inteligentes SA
 rose as much as 4.4 percent to 6.41 reais, their
biggest intraday advance since June 25.
    Standard & Poor's removed Gol from "credit watch," meaning
the company's debt ratings are unlikely to be lowered in the
short- and medium-term.
    Mexico's IPC index fell 0.18 percent to 40,551.64
after trading in positive territory earlier in the session.
    Telecommunications firm America Movil, controlled
by billionaire Carlos Slim, fell 1.8 percent, offsetting a 2
percent gain in shares of conglomerate Alfa.
    Chile's IPSA index looked to break technical
resistance at just below 3,900 points as it gained 0.24 percent
to 3,841.08.
     Banco Santander Chile rose 1 percent, contributing
most to the index's gains, while LATAM Airlines Group 
rose 0.4 percent.
    
    Latin America's key stock indexes at 1451 GMT:
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,067.76      0.58    -19.69
                                                   
 Brazil Bovespa               45,151.35     -0.13    -25.92
                                                   
 Mexico IPC                   40,551.64     -0.18     -7.22
                                                   
 Chile IPSA                    3,841.08      0.24    -10.70
                                                   
 Chile IGPA                   19,047.71      0.15     -9.60
                                                   
 Argentina MerVal              3,114.06      1.64      9.10
                                                   
 Colombia IGBC                12,655.28      0.21    -14.00
                                                   
 Peru IGRA                    15,253.10      0.47    -26.06
                                                   
 Venezuela IBC                     0.00         0   -100.00

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