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EMERGING MARKETS-Latam stocks fall as investors look past US election
November 7, 2012 / 11:05 PM / 5 years ago

EMERGING MARKETS-Latam stocks fall as investors look past US election

* U.S. "fiscal cliff" eyed after election
    * Weak German industrial growth, Greek vote weigh on global
markets
    * Brazil's Bovespa falls 1.6 pct, Mexico's IPC down 1.7 pct


    By Danielle Assalve and Asher Levine
    SAO PAULO, Nov 7 (Reuters) - Latin American stocks fell on
Wednesday, with Mexican equities slumping the most in more than
five months as investors turned away from U.S. elections to
focus on the fiscal problems plaguing the euro zone and the
United States.
    The MSCI Latin American stock index shed
1.49 percent, with commodities firms driving the biggest loss in
Brazil's main index in more than two weeks.
    U.S. President Barack Obama was re-elected to a second term,
but the nation's Congress remains divided, stoking concerns that
lawmakers may be unable to reach a deal to roll back some $600
billion in spending cuts and tax increases due early next year
that could derail the U.S. economic recovery.
    "The hurricane is spent, the election is over, but the fact
is that nothing has changed," said Pablo Spyer, director of
Mirae Asset Securities in Brazil.
   "The European crisis continues and the worrying fiscal
situation of the United States is a very serious problem, which
will bring volatility to markets," he added.   
    Investors remained cautious Wednesday after data showed
German industrial output fell more than expected in September
and while Greece's parliament prepared to vote on a
controversial round of spending cuts and tax hikes, approval of
which is crucial to unlocking fresh international aid. The
package later passed by a slim margin.
  
    Brazil's benchmark Bovespa stock index dropped 1.58
percent to 58,517.35, cutting into a rally this month but still
leaving the index up 2.5 percent this month.
    "Volatility will likely persist in the Bovespa as the
probable fight over the (U.S.) fiscal cliff will be ugly for
markets," said Marc Sauerman, a manager with JMalucelli
Investimentos in Curitiba, Brazil.
    Shares of the most widely traded commodities firms weighed
heavily on the Bovespa, with shares of state-controlled oil
company Petrobras and mining giant Vale 
down 2.31 percent and 1.05 percent, respectively. 
    BM&FBovespa SA, the world's third-largest
exchange, fell 0.72 percent after the company missed
third-quarter profit estimates on Tuesday, with revenue down for
the first time this year and expenses rising more than expected.
 
    Mexico's IPC index fell 1.7 percent in its biggest
one-day percentage drop since early June after it broke through
several support levels to close at 41,010, right near its
session low. 
    Shares of telecommunications firm America Movil, controlled
by billionaire Carlos Slim, fell 2.55 percent, contributing most
to the index's losses, while retailer WalMart de Mexico
 shed 1.84 percent.
    Shares of Cemex, one of the world's top cement
makers, fell 0.68 percent. The company said o n T uesday that it
had raised about $1.1 billion by selling a bigger-than-expected
stake of its Latam unit in a Colombian initial public offering.
 
    Chile's IPSA index dropped 0.45 percent as shares of
electricity generator Endesa Chile and parent company
Enersis fell 1.1 percent and 1.2 percent, respectively.
    Endesa Chile's third-quarter net profit plummeted 44.2
percent from the year-earlier period on lower sales prices and
higher costs, the company said on Tu esday. 
 
    Latin America's key stock indexes at 2230 GMT:
    
 Stock indexes                      daily %  year-to
                         Latest      change   date %
                                              change
 MSCI LatAm               3,656.72    -1.49     1.51
                                             
 Brazil Bovespa          58,517.35    -1.58     3.11
                                             
 Mexico IPC              41,010.98     -1.7    10.61
                                             
 Chile IPSA               4,256.34    -0.45     1.89
                                             
 Chile IGPA              20,875.45    -0.37     3.70
                                             
 Argentina MerVal         2,370.19    -1.02    -3.75
                                             
 Colombia IGBC           13,970.23    -2.51    10.30
                                             
 Peru IGRA               20,886.62    -0.24     7.26
                                             
 Venezuela IBC          363,560.75     2.23   210.64

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