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EMERGING MARKETS-Brazil stocks fall; JBS, BRF slump on police raids
March 17, 2017 / 4:07 PM / 5 months ago

EMERGING MARKETS-Brazil stocks fall; JBS, BRF slump on police raids

    By Bruno Federowski
    SAO PAULO, March 17 (Reuters) - Brazilian stocks fell on
Friday as shares of meatpackers JBS SA and BRF SA slumped after
federal police targeted their offices as part of an
investigation into alleged bribery of food inspectors and
politicians.
    The probe, known as "Operation Weak Flesh," uncovered about
40 cases of meatpackers who had paid officials to overlook
unsanitary practices such as processing rotten meat and running
plants with traces of salmonella, police said.
    Common shares in JBS fell nearly 8 percent, the
biggest decline since Oct. 26, when a government agency vetoed a
program to move some operations outside Brazil. Shares in BRF
 slumped to an almost five-year low.
    Shares of education companies Kroton Educacional SA
 and Estácio Participações SA also fell
sharply on a report that top managers at Estácio were attempting
to block a sale to its larger rival Kroton.
    Brazil's benchmark Bovespa stock index fell 1.8
percent. Still, the Brazilian real strengthened 0.3
percent, reflecting expectations of inflows stemming from a
successful airport auction on Thursday.
    Other Latin American currencies were mostly stronger,
extending gains into a third day as traders predicted that the
U.S. Federal Reserve would only increase interest rates at a
gradual pace in coming months.
    The Mexican peso firmed 0.7 percent, while the
Colombian peso strengthened 0.2 percent.
    
    Key Latin American stock indexes and currencies at 1550 GMT:
 Stock indexes                             daily %   YTD %
                                 Latest     change  change
 MSCI Emerging Markets            966.56      0.35   11.71
                                                    
 MSCI LatAm                      2614.88     -0.37   12.13
                                                    
 Brazil Bovespa                 64694.10     -1.66    7.42
                                                    
 Mexico IPC                     48190.54      0.28    5.58
                                                    
 Chile IPSA                      4633.99      0.38   11.63
                                                    
 Chile IGPA                     23245.80      0.35   12.11
                                                    
 Argentina MerVal               19543.70     -0.29   15.52
                                                    
 Colombia IGBC                   9954.07      -0.1   -1.72
                                                    
 Venezuela IBC                  37802.37      0.05   19.23
                                                    
                                                          
 Currencies                                daily %   YTD %
                                            change  change
                                  Latest            
 Brazil real                      3.1014      0.38    4.77
                                                    
 Mexico peso                     19.1350      0.65    8.41
                                                    
 Chile peso                        661.1      0.17    1.45
                                                    
 Colombia peso                   2911.72      0.20    3.08
 Peru sol                          3.247      0.15    5.14
                                                    
 Argentina peso (interbank)      15.5400     -0.06    2.16
                                                    
 Argentina peso (parallel)         16.02      0.12    4.99
                                                    
 

 (Reporting by Bruno Federowski; Editing by Tom Brown)
  

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