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EMERGING MARKETS-Latam stocks slip on US, global growth worries
July 25, 2012 / 10:35 PM / 5 years ago

EMERGING MARKETS-Latam stocks slip on US, global growth worries

 * U.S. new-home sales drop in June
 * EU officials say Greece may need more debt restructuring
 * Brazil Bovespa flat; Mexico IPC down 0.65 pct
 By Asher Levine and Danielle Assalve
 SAO PAULO, July 25 (Reuters) - Latin American stocks slipped
on Wednesday as weak housing data in the United States and
lingering concern over Europe's debt troubles weighed on the
outlook for global growth.
 The MSCI Latin American stock index declined
0.29 percent to 3,434.89 points.
 U.S. new-home sales recorded their biggest drop in more than
a year in June, dealing a setback for an economic recovery in
the United States, while EU officials said Greece had little
hope of meeting the terms of its bailout, casting fresh doubt on
its future in the euro zone. 
 Brazil's Bovespa index managed to cling above a key support
level, but it still dipped 0.06 percent to 52,607.54 for a
fourth straight session of losses.
 The Bovepsa touched its lowest level since October on
Monday, but clawed its way back to close above a key zone around
52,400. A break lower on strong volume could trigger sharper
losses ahead, analysts said. 
 "The market is not strong, it is trading in a danger zone,"
said Luiz Roberto Monteiro at brokerage Renascenca in Sao Paulo.
  Shares of iron-ore giant Vale slid for an eighth
straight session, falling 0.09 percent to the lowest level since
mid-May ahead of quarterly results. Vale reported after the
market close that second-quarter net income fell to a more than
two-year low, missing analysts' expectations. 
Vale shares on Tuesday had fallen 4.7 percent on news that
the company's chief financial officer would depart the company
ahead of the earnings announcement. 
 Shares of Telefónica Brasil, Brazil's largest
wireless carrier, fell 1.52 percent after the company posted a
5.6 percent drop in quarterly profit as it faced tougher
competition in an increasingly saturated mobile market.
 
 Shares of Itau Unibanco, Brazil's biggest
non-government lender, rose 0.70 percent. Executives from the
company said on Wednesday they expect loan write-offs to remain
stable through the rest of the year, in line with a view of
stabilizing loan delinquencies and slowing growth in bad credit
provisions. 
 Mexico's IPC index slipped for a second straight
session, losing 0.65 percent to 40,511.56.
 Shares in Mexican homebuilder Homex sank 9.33
percent to a two-month low after the company sharply cut its
2012 revenue forecast on Tuesday.
 Coca-Cola Femsa fell 7.16 percent after the
company reported after the market on Tuesday that second-quarter
profit fell 1.3 percent from a year ago.   
 Mexico's largest airline, Aeromexico, gained
0.14 percent after it announced on Wednesday it had placed an
$11 billion provisional order with Boeing, in what it
said was the biggest aircraft investment by a Mexican airline in
that country's history. 
 
 Latin America's key stock indexes at 21:43 GMT:
 
 Stock indexes                              daily %  year-to-d
                        Latest            change       te %
                                                     change
 MSCI Latam                     3,434.89      -0.29      -4.65
                                                  
 Brazil Bovespa                52,607.54      -0.06      -7.31
                                                  
 Mexico IPC                    40,435.10      -0.65       9.06
                                                  
 Argentina MerVal               2,398.82       0.46      -2.59
                                                  
 Colombia IGBC                 13,373.03      -1.37       5.58
                                                  
 Peru IGRA                     19,544.29       0.04       0.36
                                                  
 Venezuela IBC                244,389.27      -0.94     108.82
                                                  
                                                           
 
 

 (Additional reporting by Rachel Uranga; Editing by Leslie
Adler)
 

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