5 Min Read
* Lack of accord on Greece aid package saps risk appetite
* Brazil's Eletrobras plunges on license renewal worries
* Brazil Bovespa falls 0.35 pct, Mexico IPC little changed
By Asher Levine
SAO PAULO, Nov 21 (Reuters) - Latin American stocks were choppy on Wednesday as investors remained jittery over negotiations to release emergency aid to Greece, while Brazil's state-controlled electric utility Centrais Eletricas Brasileiras SA weighed on the Bovespa index.
The MSCI Latin American stock index fell for the second straight session, losing 0.33 percent to 3,540.02.
Investor attention remained focused on the euro zone debt crisis after international lenders failed to agree during overnight talks in Brussels on how to make the country's debt sustainable.
"The lack of an accord left the market a bit apprehensive in the beginning," said Silvio Campos, an economist with Tendencias Consultoria in Sao Paulo, adding that declarations of confidence by French and German policymakers that a deal would be reached helped avoid deeper losses.
Brazil's benchmark Bovespa stock index slipped 0.35 percent to 56,255.64 after a choppy open as trading resumed following a national holiday on Tuesday.
Shares of Centrais, known as Eletrobras , fell more than 16 percent on investor concerns that an expected renewal of the company's concessions at sharply lower rates would lead to steeper losses.
Eletrobras' board recommended that shareholders accept a government offer to immediately renew concessions expiring between 2015 and 2017 in exchange for lower power rates. That could lead utility revenue to fall as much as 30 percent in 2013 compared with 2012, Barclays analysts led by Francisco Navarrete wrote in a report to investors on Monday in which they cut their price target on the shares to 1 real.
"There are still some uncertainties though all signs point to the company following the government's plan and analysts are converging on what the negative effects of the changes will be on the company," Tendencias' Campos said.
Eletrobras preferred shares have lost nearly 56 percent of their value since Brazil's government announced the concession renewal terms on Sept 11.
"The situation is becoming priced in by the market and it could fall even further," Campos added.
Mexico's IPC index remained little changed at 41,202.84.
Data on Wednesday showed Mexican retail sales rose more than expected in September, though retail stocks showed little reaction to the news, with shares of Wal-Mart de Mexico SAB and Grupo Elektra SA near flat.
Chile's IPSA index dropped for a second consecutive session, losing 0.45 percent to 4,160.87.
Fertilizer, lithium and iodine producer Soquimich Comercial SA contributed most to the index's losses after it reported third-quarter income late on Tuesday that fell slightly below analysts' expectations.
Latin America's key stock indexes at 1504 GMT:
Stock indexes daily % YTD %
Latest change change MSCI LatAm 3,540.02 -0.33 -1.4
Brazil Bovespa 56,255.64 -0.35 -0.88
Mexico IPC 41,202.84 0.05 11.13
Chile IPSA 4,160.87 -0.45 -0.40
Chile IGPA 20,474.60 -0.33 1.71
Argentina MerVal 2,299.16 0.15 -6.64
Colombia IGBC 14,206.84 0.39 12.17
Peru IGRA 20,133.32 -0.29 3.39
Venezuela IBC 383,877.50 0 228.00
(Reporting by Asher Levine; Editing by Dan Grebler)