EMERGING MARKETS-Brazil stocks drop on profit-taking; Latam FX up

martes 1 de abril de 2014 13:00 GYT

SAO PAULO, April 1 (Reuters) - Brazil's benchmark Bovespa
index led losses in Latin American equity markets on Tuesday,
after closing out March with its biggest rise in more than two
years, while most currencies in the region strengthened on
continued dollar inflows.  
    The Bovespa index fell 0.8 percent as investors took
some profits after the index rose 7 percent in March. Mexico's
IPC index dipped 0.1 percent following a 4.3 percent rise
in the previous month.  
    The declines came even as expectations rose that China will
act to support its economy following weak manufacturing data for
March and that the U.S. Federal Reserve will keep its monetary
stimulus for longer after dovish comments from Chair Janet
Yellen on Monday. 
    "Overseas markets continue with a positive tone after
Yellen's remarks, but we were very stretched here," said Luiz
Roberto Monteiro, an equities trader with brokerage Renascença
in São Paulo.
    As of Monday, the Bovespa had recorded gains in 10 of the
previous 11 sessions, closing above 50,000 points for the first
time in nearly three months.
    Among the biggest decliners in the Brazilian market were
shares of telecommunications firm Grupo Oi SA, which
slid 3 percent after sources said banks were considering pulling
out of a 6 billion real ($2.7 billion) share offering by the
    Shares of Itaú Unibanco Holding SA rose 0.2
percent as the bank's weighting on the Bovespa index was poised
to rise in the May-August period, according to the first preview
of the index released by the bourse. 
    Latin American currencies extended their recent rally, with
traders saying dollars continued to flow into Latin America as
investors sought higher returns.
    Brazil's real rose 0.5 percent to 2.26 per dollar,
though gains were curbed by uncertainty about the pace of
central bank intervention in the foreign exchange market. 
    Brazil's central bank rolled over only part of the currency
swaps that expired on Tuesday in a decision that was seen by
analysts as a sign that policymakers do not want the real to
strengthen much past the level of 2.3 per dollar.
    Key Latin American stock indexes and currencies at 1643 GMT:
 Stock indexes                   daily %    YTD %
                                  change   change
 MSCI Emerging          1000.22     0.56     -0.8
 MSCI LatAm             3184.34    -0.31    -0.21
 Brazil Bovespa        50018.62    -0.79    -2.89
 Mexico IPC            40413.62    -0.12    -5.41
 Chile IPSA             3788.38     0.41     2.41
 Chile IGPA            18608.63      0.3     2.09
 Argentina MerVal       6371.38    -0.03    18.18
 Colombia IGBC         13767.43    -0.43     5.33
 Peru IGRA             14282.93    -0.11    -9.34
 Venezuela IBC          2579.85     2.25    -5.73
 Currencies                      daily %    YTD %
                                  change   change
 Brazil real             2.2555     0.53     4.49
 Mexico peso            13.0215     0.28     0.07
 Chile peso               550.6    -0.22    -4.45
 Colombia peso          1962.94     0.43    -1.58
 Peru sol                 2.808     0.00    -0.53
 Argentina peso          8.0000     0.03   -18.84
 Argentina peso           10.71     0.84    -6.63

 (Reporting by Priscila Jordao and Bruno Federowski; writing by
Walter Brandimarte; Editing by Leslie Adler)