EMERGING MARKETS-Brazil stocks fall to 8-month low; Mexico rises
* Brazil's Bovespa falls through key support * Mexico's America Movil maintains rebound momentum * Brazil Bovespa falls 0.7 pct; Mexico IPC up 0.5 pct By Danielle Assalve SAO PAULO, March 25 (Reuters) - Brazilian stocks fell to an eight-month low on Monday, hurt by losses in iron miner Vale, while Mexican stocks rose as America Movil, billionaire Carlos Slim's telecommunications firm, continued to rebound after a recent slump. Brazil's Bovespa index broke below a key support near 55,000 points to close down 0.67 percent at 54,873.12, its lowest level since late July last year. After slumping more than 4 percent in March, the Bovespa could be headed for a further fall of nearly 5 percent to the next support level, around 52,200 points, which could tempt in enough bargain hunters to halt the slide, chart watchers said. Brazilian stocks have been hit by investor concerns over government measures to revive growth in Brazil, Latin America's top economy, even as inflation is creeping higher. In addition, global appetite for riskier assets has been dampened by the banking crisis in Cyprus, which has ignited a new round of concerns about Europe's debt crisis. "None of the news we have seen is bringing people back to the market," said Clodoir Vieira, chief economist at brokerage Souza Barros. The Bovespa is 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 ended Thursday. Shares of Vale SA fell 1.69 percent and were the biggest drag on the Bovespa. Demand from China for iron ore, the raw material for steel, is expected to rise by 50 million tonnes in 2013, but it will not be enough to soak up a supply glut on the world market, China's top economic planning agency said on Monday. Vale, as well as other global miners, are counting on sustained increases in iron ore demand from China to justify massive expansion plans. Common shares of telecommunications firm Grupo Oi SA fell 3.78 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 rose 0.5 percent to 42,900.83 points, gaining ground for the fourth session in a row as the index rallies back after falling early last week to lowest level since late November. America Movil gained 2.15 percent. Shares of Slim's flagship firm have gained more than 10 percent from an around four-year low hit on March 15. Shares in America Movil, which dominates the Mexican phone and Internet markets, were hammered due to concerns of tougher regulation as local lawmakers prepared to vote on a sweeping telecommunications bill. But the stock has bounced back even as lawmakers in Mexico's lower house of Congress approved the bill last week. Brokerages issued buy calls, saying that selling had been overdone for the real growth prospects of Latin America's biggest phone and pay TV provider. Investors are also eyeing the potential that telecoms reform will pave the way for Slim to enter the Mexican pay TV market. Mexican copper miner Grupo Mexico shed 2.23 percent. Latin America's key stock indexes at 2130 GMT: Stock indexes daily YTD % Latest % change change MSCI LatAm 3,724.49 -0.28 -1.93 Brazil Bovespa 54,873.12 -0.67 -9.97 Mexico IPC 45,278.06 0.5 3.60 Chile IPSA 4,409.77 -0.93 2.52 Chile IGPA 21,616.09 -0.74 2.59 Argentina MerVal 3,404.90 -0.73 19.29 Colombia IGBC 13,983.96 0.42 -4.97 Peru IGRA 19,744.55 -1.24 -4.29 Venezuela IBC 624,082.94 -0.79 32.38
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