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EMERGING MARKETS-Brazil stocks fall on global growth concerns
March 4, 2013 / 3:26 PM / 5 years ago

EMERGING MARKETS-Brazil stocks fall on global growth concerns

* Brazil Bovespa down 1.04 pct, Mexico IPC down 0.4 pct
    * Vale drops 2.9 pct on China-growth worries
    * Batista's OGX plunges nearly 6 pct

    By Danielle Assalve
    SAO PAULO, March 4 (Reuters) - Brazilian stocks dropped for
the second straight day on Monday as concerns about the
prospects for global economic growth hurt demand for riskier
    Brazil's benchmark Bovespa stock index dropped 1.04
percent to 56,291.39. Preferred shares of mining firm Vale SA
, a major exporter of iron ore to China, fell 2.84
percent, contributing most to the index losses.
    China announced late on Friday plans to cool prices in the
country's housing market, raising fears about slower growth in
one of Brazil's main trading partners. 
    Separately, data showed services activity in China expanded
at the slowest pace in five months in February. 
    "The news from China hurt global stocks and weighed on the
local market," said Daniel Cunha, an economist with XP
Investimentos in São Paulo. "And we've also seen some
uncertainties about Europe, especially regarding Italy. The
macroeconomic outlook is murky again."
    European shares slipped as Italy appeared to be inching
toward another round of elections within months. Center-left
leader Pier Luigi Bersani issued an ultimatum to
anti-establishment 5-Star Movement boss Beppe Grillo to support
a new government or return to the polls. 
     Other regional bourses also dropped: Chile's IPSA index
 fell 0.42 percent, while Mexico's IPC index 
declined 0.4 percent.
    "It's very likely that March will be a month of pause in the
recent rally of global stocks. A month to better understand the
uncertainties in Europe," Cunha said.
    Shares of OGX Petroleo e Gas Participacoes SA 
dropped 5.92 percent to 2.86 reais on concerns about the amount
of recoverable oil in the company's reserves. Deutsche Bank
Securities analyst Marcus Sequeira cut the price target on OGX
shares to 2 reais from 3.80 reais previously. 
    After gaining about 20 percent in the first three weeks of
the year, shares of OGX, controlled by Brazilian billionaire
Eike Batista, have plunged nearly 50 percent.
    Shares of Mexican glassmaker Vitro rose 2.07
percent to 31.58 pesos after the company said it ended a lengthy
legal fight with creditors. 
    Latin America's key stock indexes at 1505 GMT:
 Stock indexes                               daily %      YTD %
                                Latest        change     change
 MSCI LatAm                      3,785.33      -0.71       0.39
 Brazil Bovespa                 56,291.39      -1.04      -7.65
 Mexico IPC                     43,821.80       -0.4       0.27
 Chile IPSA                      4,553.94      -0.42       5.87
 Chile IGPA                     22,210.23      -0.33       5.41
 Argentina MerVal                3,137.70       1.22       9.93
 Colombia IGBC                  14,792.59       0.05       0.52
 Peru IGRA                      20,632.27      -0.07       0.01
 Venezuela IBC                 620,808.50          0      31.68

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