Reuters logo
EMERGING MARKETS-Brazil stocks fall to 6-wk low, Mexico hits high
January 28, 2013 / 10:35 PM / in 5 years

EMERGING MARKETS-Brazil stocks fall to 6-wk low, Mexico hits high

* Weak earnings at Banco Bradesco weigh in Brazil
    * Mexican retailers group outlook lifts Walmex, Chedraui
    * Bovespa falls 1.87 pct, Mexico IPC up 0.74 pct


    By Danielle Assalve
    SAO PAULO, Jan 28 (Reuters) - Brazilian stocks fell to a
six-week low on Monday after weak  earnings from Banco Bradesco
fed concerns about sluggish economic growth, while Mexican
stocks hit a record high on a cheery outlook for retailers. 
    Brazil's benchmark Bovespa stock index shed 1.87
percent to 60,027.07, its lowest since Dec. 18. It was the 
biggest one-day percentage drop since mid-November.
    The Bovespa has slumped 5 percent from a high early this
year amid worries that Latin America's top economy is struggling
even after the central bank slashed interest rates last year to
a record low, while inflation is now drifting higher.    
    "There are many local uncertainties and the outlook is not
very good due to the weaker dynamics of the Brazilian economy,"
said Newton Rosa, chief economist at SulAmerica Investimentos.
    The shares of Banco Bradesco SA fell 3.07 percent
after quarterly profit at Brazil's No. 2 private sector bank
fell short of analysts' estimates. 
    The news weighed on shares of rival financial institutions,
with state-controlled Banco do Brasil SA down 2.72
percent and Itaú Unibanco Holding SA, Brazil's
largest non-government bank, falling 2.63 percent.
    The Bovespa index slumped more than 3 percent in the last
two sessions after it failed several attempts to break
resistance near 62,000 points in the last three weeks.
    Mexico's IPC index rose 0.74 percent to an all-time
high of 45,912.51 points. 
    Top retailer Wal-Mart de Mexico jumped 2.32
percent after retail trade group ANTAD said sales at its
members' stores open more than a year would rise 5 percent in
2013, just up from a 4.7 percent rate in 2012. 
    Rival retailer Grupo Comercial Chedraui,
gained 0.88 percent.
    Mexican stocks have been notching record levels since last
year, helped by solid U.S. demand for local exports and hopes a
new government will be able to push key energy and tax reforms
through a divided Congress.
    The IPC is up 5 percent this year after a nearly 18 percent
gain in 2012.
    Chile's IPSA index rose 0.31 percent to 4518.84,
also lifted by a 2.23 percent gain in retailer with Cencosud
.
        
    Latin America's key stock indexes at 2200 GMT:
 Stock indexes                    daily %    YTD %
                         Latest    change   change
 MSCI LatAm             3,920.62    -0.41     3.23
                                           
 Brazil Bovespa        60,027.07    -1.87    -1.52
                                           
 Mexico IPC            45,912.51     0.74     5.05
                                           
 Chile IPSA             4,518.84     0.31     5.06
                                           
 Chile IGPA            22,031.83      0.3     4.56
                                           
 Argentina MerVal       3,342.10     0.06    17.09
                                           
 Colombia IGBC         14,977.48    -0.10     1.78
                                           
 Peru IGRA             20,926.11    -1.68     1.44
                                           
 Venezuela IBC        492,031.78      0.3     4.37

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below