EMERGING MARKETS-Latam stocks fall on Eurogroup chief comments

lunes 25 de marzo de 2013 17:37 CET
 

* Cyprus secures deal to avert banking crisis
    * Eurogroup head says deal represents new template
    * Brazil Bovespa falls 0.34 pct, Mexico IPC little-changed

    By Asher Levine
    SAO PAULO, March 25 (Reuters) - Latin American stocks fell
on Monday, following early gains, after a key European
policymaker said a deal struck over the weekend to save Cyprus'
banking sector from collapse could serve as a template for
future rescues in the currency bloc.
    Because big depositors will lose money on the Cyprus deal,
the concern is that depositors in other countries could be
similarly affected should their banking sectors require a
rescue.
    Brazil's Bovespa index fell to its lowest point in
eight months while Mexico's IPC index remained flat.
    Shares tracked global markets higher in early trading after
Cyprus clinched bailout funds from international lenders on
Sunday in exchange for shutting down its second-largest bank and
inflicting heavy losses on uninsured depositors. 
    Those gains disappeared later in the session after Jeroen
Dijsselbloem, head of the Eurogroup of euro zone finance
ministers, said the deal represented a new template for
resolving euro zone banking problems and that other countries
may have to restructure their banking sectors. 
    Brazil's benchmark Bovespa stock index fell for the fifth
straight day, losing 0.34 percent to 55,054.89.
    "The markets abroad dropped and we went along for the ride,"
said Ariovaldo Santos, a broker with H.Commcor in Sao Paulo. "We
also broke a key resistance level at 55,100 points, so we are
seeing that weigh heavily." 
    Investor appetite for riskier investments such as Latin
American equities had been limited in recent sessions due to
uncertainty over the future of Cyprus's banking system, which
was hit hard by its exposure to heavily-discounted Greek debt.
    The Bovespa is down over 4 percent in March and on track for
its third straight monthly loss as foreign investors slashed
their exposure to Brazilian stocks by about 900 million reais in
the five sessions ending March 21.
    "The Cyprus deal alone wasn't enough to really encourage
investors," said Clodoir Vieira, chief economist at brokerage
Souza Barros in Sao Paulo. 
    "Markets abroad are breaking records and we are stuck,"
Vieira said, citing ongoing concerns over government meddling in
the private sector and the need to reassure global investors
that Brazil is a safe and profitable place to put their money.
    Iron ore mining firm Vale SA fell 1.6 percent,
contributing most to the index's declines, while drugmaker
Hypermarcas SA slipped 1.8 percent. 
    Common shares of telecommunications firm Grupo Oi SA
 fell 3.9 percent after analysts at UBS Securities
trimmed their target price on the stock, citing skepticism over
Oi's "ability to take market share and grow earnings."
 
    Mexico's IPC index edged slightly higher, adding 0.07
percent to 42,716.85.
    Shares of lender Grupo Financiero Banorte rose
1 percent, offsetting a 1 percent loss by mining firm Grupo
Mexico. 
    Data on Monday showed Mexico's economic activity rebounded
in January, helped along by robust consumer spending.
 
    Chile's IPSA index slipped 0.48 percent to 4,429.67
as shares of conglomerate AntarChile fell 2 percent.
    
    Latin America's key stock indexes at 1554 GMT:
    
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,728.34     -0.17     -1.66
                                                   
 Brazil Bovespa               55,054.89     -0.34     -9.68
                                                   
 Mexico IPC                   42,716.85      0.07     -2.26
                                                   
 Chile IPSA                    4,429.67     -0.48      2.98
                                                   
 Chile IGPA                   21,691.71     -0.39      2.95
                                                   
 Argentina MerVal              3,398.42     -0.92     19.06
                                                   
 Colombia IGBC                13,983.96      0.42     -4.97
                                                   
 Peru IGRA                    19,968.10     -0.12     -3.21
                                                   
 Venezuela IBC               625,009.88     -0.65     32.58