EMERGING MARKETS-Latam stocks fall on Petrobras, Greece

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* Latam stocks fall on faltering Greek bailout

* Petrobras fourth-quarter profits disappoint

* Brazil Bovespa falls 2.34 pct, Mexico IPC down 0.24 pct

By Rachel Uranga

MEXICO CITY, Feb 10 (Reuters) - Latin American stocks posted their biggest drop of the year on Friday after progress on a bailout of Greece stalled, spurring fears of a messy default while Brazil's state-controlled oil company Petrobras posted weak earnings.

The MSCI Latin American stock index fell 2.17 percent, its first losing week and worst one-day sell-off so far this year. The index had risen 15 percent in 2012, leaving stocks ripe for profit taking.

"Greece is a very good pretext but the truth is that people are taking profits because the markets are up very strongly," said Patricia Berry, an analyst at brokerage Intercam in Mexico City. "Markets are tired, overbought and you are coming up against resistance."

Greece came closer to a disorderly default on Friday when questions arose about the Greek government's commitment to a bailout deal agreed with the EU and IMF earlier this week.

The country will not be able to make a 14.5 billion euro ($19 billion) debt payment on March 20 if it does not receive the EU and IMF bailout.

"If things are not defined in Greece quickly you are going to see profit taking, but if Greece comes up with a deal then it will give stocks the push to keep going up," said Gerardo Roman, a trader at brokerage Actinver in Mexico City.

The rise in stock prices has been driven by upbeat economic data from the United States and China along with hopes that euro zone debt crisis was being resolved.

But a disorderly Greek default could spark a sell-off of riskier assets in favor of traditional safe-havens such as gold and the U.S. dollar. The Greek saga has dragged on for nearly two years and analysts said it has become "noise" to many investors.

" The stock markets are much more concentrated on the growth outlook than the European crisis," Berry said.

Brazil's Bovespa stock index has been benefitting from record foreign money inflows in January, with 7.2 billion U.S dollars pumped into the Bovespa.

The Bovespa index fell 2.34 percent on Friday, ending the week lower for the first time this year in its largest single-day drop in 2012.

State-controlled oil producer Petrobras drove losses in the index after the company said net profit fell 52 percent in the fourth quarter from a year earlier.

Shares in the company account for about 10 percent of the index. Preferred shares of Petrobras plunged 7.84 percent, their biggest drop since August, while common shares fell 8.28 percent.

"Petrobras has been lagging lately with the change in management, and the market isn't happy with the recent results," said Alan Oliveira, an analyst with Futura Investimentos in Salvador, Brazil. "The fear is that these results could have an impact on future performance."

Mexico's IPC stock index declined 0.24 percent to 38,149.22. America Movil, the biggest cell phone company in Latin America, dropped 1.74 percent after posting a 36 percent drop in fourth-quarter profit after the market close on Thursday. Retailer Wal-Mart Mexico slipped 0.72 percent.

"The market is anticipated to maintain a rising trajectory and I see the index between 38,500 and 39,000 with a potential to reach 40,000 to 41,000 in the coming two months," said Fanuel Fuentes, an analyst at brokerage Monex in Mexico City.

Chile's IPSA index edged up, adding 0.15 percent.

Regional energy group Enersis slipped 0.77 percent. Retailer Cencosud advanced 0.38 percent after announcing it would invest $1.285 billion this year on opening stores and malls in Latin America and saw revenue reaching $18 billion this year. (Additional reporting by Asher Levine)