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EMERGING MARKETS-Latam stocks fall as Europe tensions stoke worries
September 26, 2012 / 4:46 PM / in 5 years

EMERGING MARKETS-Latam stocks fall as Europe tensions stoke worries

* Spanish protests, Greek strike undermine bailout hopes
    * Brazil's Bovespa falls 0.6 pct, Mexico's IPC flat
    * Santander Mexico offering highlights Latam appetite

    By Danielle Assalve
    SAO PAULO, Sept 26 (Reuters) - Latin American stocks fell
for the second straight day on Wednesday, after violent protests
in Spain and a strike in Greece renewed concerns that the euro
zone's debt crisis could derail a weak global economy.
    The MSCI Latin American stock index was on
track for its weakest close since Sept. 11, falling 0.8 percent
to 3,670 points. The index has given up all of its gains since
the U.S. Federal Reserve announced another round of stimulus two
weeks ago, driving the region's stocks to a four-month high.
    Violent clashes in the streets of Madrid and a general
strike in Greece stoked doubts about European leaders'
commitment to economic reform. New signs of tensions among top
euro zone officials also underscored the long road ahead as
Europe struggles with its debt woes. 
 
    In Latin America, investors booked profits from a recent
rally, betting that bad news out of Europe would hurt the
prospects for higher-risk emerging market assets.
    "The market continues to show some natural profit-taking,
under pressure from the worries about Spain and Greece," said
analyst Ivo Moreira of the Banrisul brokerage in Porto Alegre.
    Brazil's benchmark Bovespa stock index fell 0.6
percent to 60,161 points, after finding support below 60,000,
where the index met with resistance during much of August.
    But the Bovespa's upward trend remains intact as long as it
stays above 58,900 points, Moreira noted, reinforcing a Reuters
poll released on Wednesday that showed the index extending a
rally into next year. 
    The hardest hit Brazilian shares on Wednesday were focused
among retailers giving back gains after an index of Brazil's
consumer stocks rose 26 percent so far this year.
    Apparel retailer Lojas Renner and online vendor
B2W both lost 4.7 percent in Wednesday trading.
    Shares of Brazilian airline Gol Linhas Aereas 
fell 1.4 percent after a regulator said it was putting off a
ruling on the takeover of rival WebJet because board members
needed more time to review the case. 
    Mexico's IPC index was little changed at 40,194,
rebounding from losses after shares of the Mexican unit of
Spanish bank Santander rose following the country's biggest
share offering ever.
    Santander Mexico gained 3.9 percent on
Wednesday after its parent company raised more than $4 billion
in a much-awaited share sale highlighting strong investor
appetite for assets in Latin America's second largest economy.
    The share offering was 4.8 times oversubscribed, but the
bank has no plans to reopen or extend it, Santander CEO Marcos
Martinez said in a Wednesday interview. 
    Weighing on the index, however, was Monterrey-based
conglomerate Alfa, which fell 1.1 percent the day
after finalizing a 10-for-1 share split to boost the stock's
liquidity. Alfa sells auto parts, petrochemical and food units.
    In Chile, the blue-chip IPSA index fell for the
third straight session, losing 0.4 percent to 4,182 points.
    
    Latin America's key stock indexes at 1618 GMT:
    
 Stock indexes              Latest     Daily pct    YTD pct
                                          change     change
 MSCI Latam                  3,670.40      -0.79        2.7
                                                  
 Brazil Bovespa             60,161.46      -0.56       6.00
                                                  
 Mexico IPC                 40,193.71      -0.05       8.40
                                                  
 Chile IPSA                  4,182.17       -0.4       0.11
                                                  
 Chile IGPA                 20,356.08      -0.39       1.12
                                                  
 Argentina MerVal            2,492.99      -1.59       1.23
                                                  
 Colombia IGBC              13,887.47      -0.61       9.65
                                                  
 Peru IGRA                  21,651.27      -0.44      11.18
                                                  
 Venezuela IBC             304,393.41          0     160.08

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