EMERGING MARKETS-Brazil Bovespa drops with Petrobras; real gains
SAO PAULO, Dec 26 (Reuters) - Shares of Brazil's state-run oil company Petroleo Brasileiro SA drove the benchmark Bovespa index lower on Friday, while the Brazilian real posted gains in a thin trading session squeezed between the Christmas holiday and the weekend. Petrobras' shares fell about 3 percent after Moody's placed the oil firm's credit rating on review for a possible downgrade and a Brazilian newspaper said the U.S. city of Providence, Rhode Island, was suing the company for bond losses stemming from a corruption scandal. Petrobras has already been sued by several U.S. investors who bought its American Depositary Receipts, but this lawsuit increases potential legal losses for the company as it includes investors who purchased bonds it issued on international capital markets between 2010 and 2014. "Petrobras has been trying to improve its image ... but headlines remain negative, uncertainty is high and the number of court cases against the company is increasing," said Luis Gustavo Pereira, an analyst with Guide Investimentos in Brazil. Brazil's Bovespa index slid 0.4 percent, also weighed down by shares of miner Vale and steelmaker Gerdau , which have been pressured by recent losses in metal prices. The Brazilian real gained 0.4 percent in thin trading, with traders cautiously awaiting details about the terms of the central bank's intervention program next year, which currently provides investors with as much as $200 million worth of currency hedge daily. Central bank chief Alexandre Tombini has said the supply of currency hedge may be cut to as much as $50 million per day in 2015, but hasn't unveiled a final number yet. Other Latin American currencies were flat to slightly stronger as many traders took the day off. Key Latin American stock indexes and currencies at 1420 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging 953.81 0.34 -5.19 Markets MSCI LatAm 2727.42 0.09 -14.86 Brazil Bovespa 50640.46 -0.49 -1.68 Mexico IPC 0 0 -100.00 Chile IPSA 3827.22 0.4 3.46 Chile IGPA 18751.69 0.28 2.88 Argentina MerVal 0 0 -100.00 Colombia IGBC 11760.94 0 -10.02 Peru IGRA 14553.7 0.07 -7.62 Venezuela IBC 3796.85 -0.11 38.74 Currencies daily % YTD % change change Latest Brazil real 2.6861 0.33 -12.26 Mexico peso 14.6902 0.11 -11.30 Chile peso 608 0.04 -13.47 Colombia peso 2351.99 0.00 -17.86 Peru sol 2.971 0.10 -5.99 (Reporting by Priscila Jordao and Patricia Duarte; Writing by Walter Brandimarte; Editing by Chizu Nomiyama)
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