July 19, 2013 / 3:06 PM / 5 years ago

EMERGING MARKETS-Brazil stocks retreat after four-session rally

* World markets down after record highs for Dow, S&P
    * Vale, Petrobras give up recent gains
    * Brazil Bovespa down 0.66 pct, Mexico IPC down 0.7 pct

    By Lucas Iberico-Lozada
    SAO PAULO, July 19 (Reuters) - Brazilian stocks tracked
world markets lower on Friday, snapping a four-session rally as
profit-taking investors sold shares of commodities producers and
    Brazil's benchmark Bovespa stock index fell 0.66
percent to 47,342.88 after its longest rally in nearly two
months. The index is on track to close the session with a 3.8
percent weekly gain, its best since November of last year.  
    Mexico's IPC index fell 0.7 percent, while Chile's
bourse headed for its first loss this week.
      The Bovespa's losses tracked a dip in global markets after
the Dow Jones industrial average and the S&P 500 index
 reached record highs earlier this week.
    "It's very straightforward. The entire market, here and
abroad, has seen four days of big gains. Now they're adjusting,"
said Luiz Roberto Monteiro of brokerage firm Renascenca in Sao
    Shares of mining giant Vale SA fell 1.38 percent,
erasing gains made in the two previous sessions.
    Shares of lenders Banco Bradesco SA and
state-controlled rival Banco do Brasil fell 1.6
percent and 1.2 percent, respectively.
    Second-quarter data from Brazil's top-four listed banks may
reinforce the view that profitability trends remain fragile,
with performance hinging on cost-cutting after revenue from
lending-related activities stagnated, a Thomson Reuters poll of
analysts showed on Friday. 
    Shares of power utility Centrais Eletricas Brasileiras SA
, known as Eletrobras, fell for the fourth straight
day, losing 5.1 percent.
    Most of Eletrobras' workers have been on strike since
Tuesday over demands for higher wages, and analysts have warned
of weak profits in the second quarter due to high investment
costs and low cash flow.
    Mexico's IPC index dropped 0.7 percent to 39,962.36,
with the index on track to post its worst week this month.
    Shares of telecommunications firm American Movil,
owned by billionaire Carlos Slim, fell 0.8 percent and are on
track to post their biggest weekly loss in over three months.
    Chile's IPSA index retreated from an over two-week
high as it dropped 0.38 percent to 3,894.94.
    Shares of retailers Falabella and Cencosud 
slipped 0.8 percent and 1 percent, respectively.
    Latin America's key stock indexes at 1443 GMT
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,187.70        -1    -15.22
 Brazil Bovespa               47,342.88     -0.66    -22.33
 Mexico IPC                   39,962.36      -0.7     -8.57
 Chile IPSA                    3,894.94     -0.38     -9.45
 Chile IGPA                   19,281.07     -0.29     -8.49
 Argentina MerVal              3,396.47      0.57     19.00
 Colombia IGBC                13,518.74      0.81     -8.13
 Peru IGRA                    15,450.14      0.86    -25.11
 Venezuela IBC               1,249,789.         0    165.10
0 : 0
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