July 26, 2018 / 9:42 PM / 2 months ago

EMERGING MARKETS-LatAm stocks dip off highs after earnings reports

 (Recasts with Brazil and Mexico stock losses)
    By Paula Arend Lair
    BRASILIA, July 26 (Reuters) - Latin American stocks slipped
on Thursday, weighed down by losses in Brazilian lender Banco
Bradesco and retailer Wal-Mart de Mexico in the wake of a heavy
batch of corporate earnings reports.
    The benchmark Bovespa stock index fell more than 1
percent, pulling back from a nine-week high.
    Banco Bradesco SA shares fell sharply despite
stronger-than-expected second-quarter profits, with analysts
citing growing expenses.
    Rico Investimentos chief analyst Roberto Indech said
investors were taking profits from recent highs and looking
closely at earnings reports, which were driving certain stocks. 
    Shares in Vale SA jumped almost 2 percent after
the world's largest iron ore producer reported higher
second-quarter operating profit, helped by increased output.
    Although the miner's net income undershot analysts'
expectations, mostly due to a currency hit, it also unveiled
plans to buy back $1 billion worth of common stock and pay out a
dividend of $2.054 billion in September.
    Shares in AmBev, the Latin American unit of
brewing giant Anheuser Busch Inbev NV, surged over 5
percent as the World Cup boosted second-quarter beer sales.

    Mexico's S&P/BMV IPC stock index dipped from a more than
five-month high.
    Shares in Walmart de Mexico shed almost 5.9
percent off a record high, its biggest one-day drop since
November 2016, after its profits beat expectations but some
analysts highlighted weakness in Central America.
    Shares of Mexican bank Banorte rose nearly 2 percent to a
record high ahead of its quarterly report. 
    Reuters reported on Thursday that Banorte laid off some 500
employees from recently acquired Grupo Financiero Interacciones,
or about half of the specialist government lender's workforce.

    Currency markets in Latin America showed little clear trend,
with investors avoiding making big bets as concerns over global
trade tensions fueled caution. 
    The Brazilian real weakened about 1.2 percent, while
the Mexican peso was little changed.
    
    Key Latin American stock indexes and currencies at 1957 GMT:
    
 Stock indexes                Latest      Daily   YTD pct
                                            pct    change
                                         change  
 MSCI Emerging Markets         1,087.83   -0.09     -6.01
                                                 
 MSCI LatAm                    2,701.53    -1.1     -3.41
 Brazil Bovespa               79,363.61   -1.07      3.88
 Mexico IPC                   49,436.59   -0.34      0.17
 Chile IPSA                    5,445.12   -0.24     -2.15
 Chile IGPA                   27,407.52   -0.13     -2.05
 Argentina MerVal             29,220.98   -0.49     -2.81
 Colombia IGBC                12,147.10    0.33      6.83
 Venezuela IBC                94,621.52   -0.38  7,390.98
                                                         
 Currencies                      Latest   Daily   YTD pct
                                            pct    change
                                         change  
 Brazil real                     3.7460   -1.21    -11.55
 Mexico peso                    18.6400    0.11      5.68
 Chile peso                       646.6   -0.20     -4.94
 Colombia peso                  2,882.3    0.06      3.46
 Peru sol                         3.272    0.03     -1.07
 Argentina peso (interbank)     27.4000   -0.11    -32.12
                                                 
 Argentina peso (parallel)         28.5    0.35    -32.53
                                                 
 
 (Additional reporting by Sheky Espejo in Mexico City; Editing
by Dan Grebler)
  
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