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EMERGING MARKETS-Brazil stocks rise though face technical resistance
January 23, 2013 / 3:10 PM / 5 years ago

EMERGING MARKETS-Brazil stocks rise though face technical resistance

* Brazil's Bovespa stuck near 62,000 points
    * Bovespa up 0.15 pct, Mexico IPC, Chile IPSA little changed

    By Asher Levine and Danielle Assalve
    SAO PAULO, Jan 23 (Reuters) - Brazilian stocks edged higher
on Wednesday though gains in the benchmark Bovespa index
continued to be limited by technical resistance.
    Mexico's IPC index and Chile's IPSA index 
were both little-changed.
    Brazil's Bovespa stock index rose 0.15 percent to
61,786.47 points. The index has remained range-bound between
61,500 points and 62,000 points for over two weeks.
    Investor risk appetite has been muted in recent days as 
expectations that a proposed short-term debt-limit extension in
the United States could lead to nearly four more months of
uncertainty. 
    "The market is in a holding pattern, waiting for the vote on
the U.S. debt ceiling," said Newton Rosa, chief economist at
SulAmerica in Sao Paulo. "Until then, the market will move
laterally."
    Shares of OGX Petroleo e Gas Participacoes SA,
the oil company controlled by Brazilian billionaire Eike
Batista, rose 1 percent, helping offset a 3 percent loss by
Usinas Siderurgicas de Minas Gerais SA, known as
Usiminas.
    Klabin shares rose 3 percent after Itau Unibanco
analysts said in an investor note that the outlook for earnings
at the paper producer appear positive.
    "Little by little the Bovespa index is trying to gain
momentum," Banco Votorantim analysts wrote in an investor note
on Wednesday. 
    The analysts warned that "While (the Bovespa) remains below
62,280 there are good chances it will continue weakening towards
61,480 to 60,590 points."
    Strategists at Morgan Stanley & Co said in a Tuesday report
that the balance between risk and reward in Brazil's stock
market has deteriorated over the past two months following a 9
percent rally since late November. 
    Mexico's IPC index was little changed at 45,283.45
points following five straight days of gains.
    Retailer Wal-Mart de Mexico rose 0.57 percent
after data on Wednesday showed Mexican retail sales jumped in
November by the most since June. 
    Chile's IPSA index was virtually unchanged at
4,536.13 points.  
    
    Latin America's key stock indexes at 1446 GMT:
    
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,949.49      0.31      3.67
                                                   
 Brazil Bovespa               61,786.47      0.15      1.37
                                                   
 Mexico IPC                   45,283.45     -0.08      3.61
                                                   
 Chile IPSA                    4,536.13      0.02      5.46
                                                   
 Chile IGPA                   22,083.43      0.02      4.81
                                                   
 Argentina MerVal              3,344.81      1.16     17.19
                                                   
 Colombia IGBC                14,862.73      0.28      1.00
                                                   
 Peru IGRA                    21,606.47     -0.09      4.74
                                                   
 Venezuela IBC               477,521.81     -1.11      1.29

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