January 25, 2013 / 12:01 AM / in 5 years

EMERGING MARKETS-Brazil stocks plunge while Embraer soars

* Embraer shares jump after booking $4 bln deal
    * Brazil Bovespa down 1.29 pct, Mexico IPC flat

    By Danielle Assalve
    SAO PAULO, Jan 24 (Reuters) - Brazilian stocks fell on
Thursday as shares of steelmakers and oil producers weighed,
though trading volume remained light and volatility was muted
ahead of a market holiday.
    Mexico's IPC index was flat while Chile's bourse
 fell to buck a recent winning streak. 
    Brazil's benchmark Bovespa stock index lost 1.29
percent to close at 61,169.83.
    Shares of iron ore miner Vale, fell 2.2 percent,
while shares of OGX Petroleo e Gas Participacoes SA,
the oil company controlled by Brazilian billionaire Eike
Batista, fell 3.02 percent. Steelmaker Gerdau SA lost
1.72 percent.
    "The bourse has no end buyers, leaving the market fragile,
susceptible to more daring operations by bigger players and that
ends up impacting the share prices," said Ariovaldo Santos,
equities manager at the H.Commcor Brokerage in Sao Paulo.
    However, shares of Embraer SA, the world's
largest maker of regional jets, rocketed 8.89 percent after the
company said it booked an order worth up to $4 billion with
Republic Airways Holdings Inc. 
    Shares of miner Grupo Mexico rose 0.69 percent
after the company announced a total of $3.5 billion investment
in 2013. 
    Chile's blue-chip IPSA stock index closed 0.56
percent lower, as investors booked profits following a strong
rally in recent weeks.
    "Everything points to more structural, stronger
profit-taking. I wouldn't be surprised to see the market
correcting a couple more days," said Arturo Curtze, a trader at
Vantrust Capital brokerage, adding he had not seen the same
foreign institutional demand as in prior weeks.
    Since the start of the year the IPSA has risen 4.3 percent.
    Latin America's key stock indexes at 2329 GMT:
 Stock indexes                                    % change
 MSCI LatAm                          3,941.71        -0.12
 Brazil Bovespa                     61,169.83        -1.29
 Mexico IPC                         45,428.70        -0.03
 Chile IPSA                          4,485.67        -0.56
 Chile IGPA                         21,880.39        -0.51
 Argentina MerVal                    3,316.25         0.46
 Colombia IGBC                      14,900.24         0.21
 Peru IGRA                          21,500.47         -0.7
 Venezuela IBC                     489,009.97         2.33

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