May 20, 2013 / 2:46 PM / 5 years ago

EMERGING MARKETS-Brazil stocks sink following weak earnings

* Brazilian companies posted avg 12.3 pct drop in Q1 income
    * Expiration of share options leaves Bovespa volatile
    * Brazil Bovespa falls 0.76 pct, Mexico IPC down 0.38 pct

    By Danielle Assalve
    SAO PAULO, May 20 (Reuters) - Brazilian stocks dropped on
Monday as investors reevaluated their positions in local shares
following a disappointing first-quarter earnings season.
    Mexico's IPC index dropped to its lowest level since
late November, while Chile's bourse rose for the first
session in four.
    Brazil's benchmark Bovespa stock index fell its most
in five sessions, losing 0.76 percent to 54,744.20.
    Traders said the index would remain volatile ahead of the
expiration of options on shares, set for 1 p.m. (1600 GMT). 
    Last week marked the close of earnings season for Brazilian
corporations. Average net income at 320 publicly-traded
Brazilian companies fell 12.29 percent in the first quarter from
the same period last year, according to financial consultancy
    "The first quarter results were not good and in general have
not provided motivation for investors to buy shares," said
Ariovaldo Santos, an equities manager with brokerage H.Commcor
in Sao Paulo. "From here on out the market is going to be
tracking the macroeconomic data."
    Earlier on Monday a central bank survey showed analysts have
trimmed their outlook for Brazilian economic growth in 2013 to
2.98 percent from 3 percent previously. 
    Mexico's IPC index fell its most in over a week,
losing 0.38 percent to 41,646.44.
    Conglomerate Alfa fell 3.1 percent, contributing
most to the index's losses, while telecommunications firm
America Movil, controlled by billionaire Carlos Slim,
rose 0.8 percent.
    America Movil's U.S. unit Tracfone Wireless has made a deal
to acquire the assets of U.S. mobile virtual network operator
Start Wireless Group, the firm said on Monday. 
    Chile's IPSA index snapped a three-day losing
streak, adding 0.16 percent to 4,265.75 as conglomerate Copec
 rose 0.44 percent. 
    Latin America's key stock indexes at 1424 GMT:
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,690.84      -0.4     -2.43
 Brazil Bovespa               54,744.20     -0.76    -10.18
 Mexico IPC                   41,646.44     -0.38     -4.71
 Chile IPSA                    4,265.75      0.16     -0.83
 Chile IGPA                   20,944.63      0.14     -0.60
 Argentina MerVal              3,687.79     -0.18     29.20
 Colombia IGBC                13,313.24     -0.22     -9.53
 Peru IGRA                    16,579.16      0.22    -19.63
 Venezuela IBC               763,341.75         0     61.92
0 : 0
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