Brazilian stocks drop on financials; Latam currencies weaken

By Agamoni Ghosh
Jan 16 (Reuters) - Brazilian stocks fell on Wednesday as
bank losses weighed on the Bovespa index despite robust gains
from the retail and materials sector, while currencies in Latin
America weakened against the U.S. dollar.
Sao Paulo's benchmark index fell 0.2 percent,
further retreating from record-high levels as financial stocks
sagged after the biggest U.S. banks blamed a bond market slump
towards the end of 2018 for lower fixed-income revenues.
Itau Unibanco Holding S.A led the declines among
financials, while Brazilian planemaker Embraer SA
lost the most on the index after it lowered its revenue
projection for 2018, hurt by fewer deliveries of executive jets
and a runway testing incident with a new jet.
Embraer is in the midst of finalizing a deal with Boeing
in which it expects to sell 80 percent of its commercial
aviation division for $4.2 billion.
Shares of Brazilian gun maker Taurus Armas SA,
which does not trade on the benchmark, fell more than 10 percent
after Brazil's government said it is contemplating opening the
domestic market to foreigners.
Among top gainers, oil marketing firm Cosan SA Industria e
Comercio rose 2.5 percent and retailer Via Varejo
was up 2.6 percent.
The Bovespa has so far risen almost 7 percent since the
beginning of the year, continuing a bull run after emerging as
one of the top performing indexes across the world in 2018.
Latin American currencies meanwhile, weakened as the dollar
benefited from the euro's fall after the British parliament
rejected Prime Minister Theresa May's Brexit deal.
Brazil's real and Mexico's peso slid for a
second consecutive session, while Chile's peso was one of
the few currencies in the region to gain, buoyed by a rise in
the price of copper, the country's main export.

Key Latin American stock indexes and currencies at 1315 GMT

Stock indexes daily %
Latest change
MSCI Emerging Markets 1006.25 0.11

MSCI LatAm 2821.48 -0.2

Brazil Bovespa 93956.96 -0.2

Mexico IPC - -

Chile IPSA 5376.69 0.05

Argentina MerVal - -

Colombia IGBC - -

Currencies daily %
Brazil real 3.7211 -0.10

Mexico peso 19.0103 -0.11

Chile peso 674.4 0.20

Colombia peso 3127.35 0.38
Peru sol - -

Argentina peso (interbank) - -

(Reporting by Agamoni Ghosh in Bengaluru
Editing by Paul Simao)

2019-01-16 16:52:11

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