EMERGING MARKETS-Latam stocks fall to three-month low

Fri Nov 16, 2012 10:13pm IST

Related Topics

* U.S. budget talks, European recession batter confidence
    * Brazil's Bovespa drops 2 pct after national holiday
    * Mexico IPC down 0.7 pct, America Movil falls for 9th
session

    By Danielle Assalve
    SAO PAULO, Nov 15 (Reuters) - Latin American stocks slipped
to a three-month low on Friday as concerns about a recession in
Europe and a budget impasse in the United States weighed on
demand for emerging market assets.
    The MSCI Latin American stock index fell 1.5
percent in midday trading to its lowest point since July 26.
    Brazil's benchmark Bovespa index lost ground for the
sixth session in seven, dropping 2 percent as the Sao Paulo
stock exchange reopened after a national holiday.
    "The Bovespa is adjusting after the Thursday holiday, when
markets overseas registered losses," said Luis Gustavo Pereira,
a strategist at Futura Corretora in Sao Paulo. "The atmosphere
is tense, with concerns about the situation in Europe and the
risks in the United States."
    President Barack Obama met with top U.S. lawmakers on Friday
to head off year-end, across-the-board tax hikes and spending
cuts that could push the economy back into recession. Their
efforts came a day after data showed a debt crisis in Europe
dragged the euro zone into its second recession since 2009 in
the third quarter.  
    In Brazil, state-run power utility Eletrobras led
losses on the Bovespa index, posting an 12.1 percent drop, its
biggest loss since November 2008, after the company said it will
forgo 9.6 billion reais ($4.7 billion) in annual revenue as a
result of government plans to cut power rates. 
    TIM Participacoes, Brazil's No. 2 wireless
carrier, fell 5.9 percent as regulators blocked sales of certain
plans for the second time in five months. 
    Homebuilder PDG Realty fell 5.4 percent to a
six-month low as its chief executive said the company may have
to account for more of the cost overruns that triggered losses
in recent quarters. 
    Mexico's IPC index declined 0.7 percent as heavily
weighted telecom America Movil, run by billionaire
Carlos Slim, fell for the ninth straight session.
    Mexico's top cement maker Cemex slipped 0.4
percent as its affiliate Cemex Latam Holdings debuted
on the Colombian stock exchange. Earlier this month, Cemex, one
of the world's top cement makers, said it had raised about $1.1
billion by selling a bigger-than-expected stake of its Latam
unit in a Colombian initial public offering. 

    Latin America's key stock indexes at 1633 GMT:   
 Stock indexes                           daily %      YTD %
                          Latest          change     change
 MSCI LatAm                  3,473.92      -1.53      -2.07
                                                  
 Brazil Bovespa             55,142.39      -2.02      -2.84
                                                  
 Mexico IPC                 40,301.30      -0.67       8.69
                                                  
 Chile IPSA                  4,182.58      -0.11       0.12
                                                  
 Chile IGPA                 20,530.00      -0.04       1.99
                                                  
 Argentina MerVal            2,280.02      -1.81      -7.42
                                                  
 Colombia IGBC              14,054.35      -0.98      10.96
                                                  
 Peru IGRA                  19,999.04      -0.47       2.70
                                                  
 Venezuela IBC             384,203.41       1.72     228.28
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