January 28, 2013 / 3:00 PM / in 5 years

EMERGING MARKETS-Brazil stocks fall on Bradesco profit miss

* Banco Bradesco Q4 profit falls slightly short of estimates
    * Swings in Brazil's Bovespa remain muted
    * Bovespa slips 0.76 pct, Mexico IPC flat

    By Asher Levine
    SAO PAULO, Jan 28 (Reuters) - Brazilian stocks slipped on
Monday, with bank shares falling after Banco Bradesco posted a
lower-than-expected fourth quarter profit.
    Mexico's IPC and Chile's IPSA indexes were
    Brazil's benchmark Bovespa stock index fell for the
second straight session, losing 0.76 percent to 60,705.17.
    Shares of Banco Bradesco SA fell 1.5 percent
after quarterly profit at Brazil's No. 2 private sector bank
fell slightly short of analysts' estimates, as lower
insurance-related income and higher operating expenses offset
the positive impact of a decline in bad loan provisions.
    The news weighed on shares of rival financial institutions,
with state-controlled Banco do Brasil SA down 2.25
percent and Itaú Unibanco Holding SA, Brazil's
largest non-government bank, falling 1.9 percent. 
    "People expected more from Bradesco and that is reflecting
in the shares of the other banks," said Ariovaldo Santos, an
equities manager with H.Commcor in Sao Paulo. "In general,
(fourth quarter) results will be like Bradesco, meaning not good
or bad, but the market is always expecting a bit more."
    Swings in Brazil's stock market have remained muted for
nearly three weeks, with the Bovespa index struggling to break
resistance near 62,000 points.
    "We have had very little oscillation because we don't have
any long-term buyers," Santos added. "We will remain at this
level for a while until we start to see more results come out." 
    Analysts said investors also remained cautious ahead of the
U.S. Federal Reserve's Open Market Committee meeting on Tuesday
and Wednesday and the U.S. nonfarm payrolls report on Friday. 
    Mexico's IPC index was little changed at 45,558.19
points as a 0.8 percent gain by bottling group Femsa
 offset a 0.36 percent decline by mining firm Grupo
    Chile's IPSA index was flat at 4,506.01 points.
    A technical indicator known as the relative strength index
remained in "overbought" territory, however, indicating stocks
may be due to fall in coming sessions.
    Banco de Chile rose 1.8 percent, while industrial
conglomerate Copec fell 0.4 percent.
    Latin America's key stock indexes at 1439 GMT:
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,935.03     -0.04      3.66
 Brazil Bovespa               60,705.17     -0.76     -0.41
 Mexico IPC                   45,558.19     -0.04      4.24
 Chile IPSA                    4,506.01      0.02      4.76
 Chile IGPA                   21,971.43      0.02      4.28
 Argentina MerVal              3,375.50      1.06     18.26
 Colombia IGBC                14,992.95      0.00      1.88
 Peru IGRA                    21,277.32     -0.03      3.14
 Venezuela IBC               490,903.81      0.07      4.13
0 : 0
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