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EMERGING MARKETS-Latam stocks mixed; Brazil edges up, Mexico drops
April 24, 2013 / 10:57 PM / 5 years ago

EMERGING MARKETS-Latam stocks mixed; Brazil edges up, Mexico drops

* Vale, Petrobras lead Bovespa rally; longest since
    * Coke bottler Femsa weighs on Mexico bourse
    * Brazil's Bovespa adds 0.18 pct, Mexico's IPC down 1.9 pct

    By Asher Levine
    SAO PAULO, April 24 (Reuters) - Brazilian stocks rose
slightly on Wednesday as continued bargain-hunting fueled a
rally in commodities producers, but Mexican stocks tumbled after
bottling group Femsa posted weak first-quarter
    Brazil's Bovespa stock index traded higher for the
fifth straight session, its longest stretch of gains since
mid-September 2012. The index added 0.18 percent to 54,984.23
    Shares of iron ore giant Vale SA advanced 0.72
percent. After the market close, the company reported a $3.11
billion Q1 profit, beating analyst expectations. 
    State-run oil company Petroleo Brasileiro SA,
known as Petrobras, rose 2.61 percent, adding to the previous
session's gains after Brazil's government announced measures to
support the country's ethanol industry. 
    Petrobras currently imports gasoline to satisfy domestic
demand, but sells the fuel at a loss due to government price
controls intended to temper inflation. Increased ethanol output
would help lower gasoline imports and reduce pressure on
Petrobras' bottom line.
    "Vale and Petrobras have been trading below book value and
stocks are very cheap right now," said Leandro Silvestrini, an
analyst with brokerage firm Intrader in Sao Paulo. "It's natural
that we start to see a recovery in those shares. Especially
after the Bovespa hit support levels near 52,300 last week."
    In Mexico, the benchmark IPC index moved lower for
the first session in four, losing 1.9 percent to trade at
    Shares of Femsa, Latin America's biggest Coke
bottler, fell 6.06 percent after the company said higher costs
triggered a 7.7 percent drop in its first-quarter profit.
    Chile's blue-chip IPSA index was little changed at
4,312.36 as a 2.28 percent gain in shares of forestry and paper
company CMPC helped offset a 1.53 percent decline in
retailer Falabella.
    Latin America's key stock indexes at 2148 GMT:
 Stock indexes                                      % change
 MSCI LatAm                          3,711.38          -0.62
 Brazil Bovespa                     54,984.23           0.18
 Mexico IPC                         42,294.93           -1.9
 Chile IPSA                          4,312.36          -0.02
 Chile IGPA                         21,156.85           0.02
 Argentina MerVal                    3,603.42           0.95
 Colombia IGBC                      13,455.32           0.43
 Peru IGRA                          17,662.16          -0.67
 Venezuela IBC                     646,681.19              0

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