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EMERGING MARKETS-Brazil stocks reverse gains as banks weigh
October 24, 2013 / 2:55 PM / 4 years ago

EMERGING MARKETS-Brazil stocks reverse gains as banks weigh

* Brazil Bovespa falls 0.32 pct, Mexico IPC flat

    SAO PAULO, Oct 24 (Reuters) - Brazilian stocks rose gave up
early gains on Thursday as banking shares dropped, offsetting
encouraging economic data from top trade partner China.
    Chile's bourse snapped a four-day rally while
Mexico's IPC index was little changed.
    Brazil stocks rose early after purchasing managers' data on
Thursday showed manufacturing activity in China reached a
seven-month high in October, helping counteract concerns that
officials would tighten monetary policy in an effort to control
    China is a top purchaser of Latin American commodities such
as soybeans, iron-ore, copper and petroleum.
    While shares of commodities producers such as iron-ore miner
Vale SA and pulp producer Fibria Celulose SA
 gained, Brazil's benchmark Bovespa stock index
 was unable to remain in positive territory.
    "The China data offered some relief...but the market is
losing strength," said Ariovaldo Santos, a trader with H.Commcor
in Sao Paulo. "Now we will start to see the impact of corporate
earnings, where everything is very much up in the air."
    Shares of Banco Santander Brasil SA, the largest
foreign lender in Brazil, fell 1.6 percent after the company
said recurring profit was down 0.2 percent in the third quarter
from the prior quarter. 
    Rival banks also dropped, with shares of Banco Bradesco SA
 down 0.9 percent and Itau Unibanco Holding SA
 slipping 0.72 percent.
    On Monday, Bradesco said intense competition from state-run
banks would limit any attempt to raise borrowing costs and
offset slower growth in interest income. 
    Shares of debt-laden oil producer OGX Petroleo e Gas
Participacoes SA fluctuated near unchanged levels
after a local newspaper reported the company is in talks to sell
a Brazilian natural gas unit. 
    Mexico's IPC index remained near Wednesday's closing
levels after meeting technical resistance near its 90-day simple
moving average.
    Shares of Coke bottler Coca-Cola Femsa slipped 0.5
percent after the company said third-quarter profit fell 17
percent from the same period last year. 
    Chile's IPSA index dropped off a recent one-month
high as shares of conglomerate Copec fell 1 percent.
    Latin America's key stock indexes at 1415 GMT:
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,422.79     -0.87     -9.08
 Brazil Bovespa               55,265.05     -0.32     -9.33
 Mexico IPC                   40,545.48     -0.02     -7.23
 Chile IPSA                    3,916.70     -0.34     -8.94
 Chile IGPA                   19,258.09     -0.21     -8.60
 Argentina MerVal              5,358.74     -0.08     87.74
 Colombia IGBC                14,295.86      0.15     -2.85
 Peru IGRA                    16,210.34      0.08    -21.42
 Venezuela IBC               2,012,806.         0    326.95

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