EMERGING MARKETS-Brazil stocks drop on looming energy crisis

viernes 23 de enero de 2015 11:39 GYT

SAO PAULO, Jan 23 (Reuters) - Brazilian stocks fell on
Friday on fears of energy rationing that could hit the country's
already ailing economy, while Latin American currencies weakened
after an ECB-inspired rally.
    Brazil's benchmark Bovespa index underperformed
regional stock markets to fall 1.4 percent as shares of
companies such as miners, steelmakers, banks and utilities
    Brazil is under the threat of a severe energy crisis this
year as a prolonged drought has depleted key reservoirs that
supply water for hydroelectric power generation.
    Energy rationing is possible if water reservoirs fall below
10 percent of capacity, Brazil's Energy Minister Eduardo Braga
said on Thursday. Reservoirs in Brazil's southwest and northwest
regions now stand at around 17 percent of capacity.
    "There is widespread concern about the water and energy
sectors, particularly after the energy minister said ... there
may be energy rationing," said Luiz Roberto Monteiro, a trader
with Renascenca brokerage in Brazil. "That would hurt the whole
    Shares of Petroleo Brasileiro SA, or Petrobras,
fell more than 1 percent amid talk that the state-run oil firm
could release later on Friday its long-delayed third-quarter
earnings. Investors expect the numbers may include large
writedowns related to a massive corruption scandal at the
    Petrobras confirmed its board would hold a meeting on Friday
but gave no details.
    Meanwhile, most Latin American currencies weakened as
investors took profits from recent gains which had been inspired
by the massive bond-buying program unveiled by the European
Central Bank on Thursday.
    Key Latin American stock indexes and currencies at 1520 GMT:
 Stock indexes                  daily %    YTD %
                                 change   change
 MSCI Emerging          991.79     0.84     2.85
 MSCI LatAm            2725.41    -1.54     1.48
 Brazil Bovespa       48725.95    -1.45    -2.56
 Mexico IPC            42928.2    -0.45    -0.50
 Chile IPSA            3857.89     -0.2     0.18
 Chile IGPA           18887.99    -0.16     0.09
 Argentina MerVal      8718.88    -0.63     1.63
 Colombia IGBC        10819.31     1.02    -7.01
 Peru IGRA               13458    -0.42    -9.03
 Venezuela IBC         3946.06        0     2.26
 Currencies                     daily %    YTD %
                                 change   change
 Brazil real            2.5838    -0.42     2.85
 Mexico peso            14.631     0.02     0.77
 Chile peso              626.1    -0.30    -3.15
 Colombia peso         2386.39    -0.60     0.07
 Peru sol                3.013    -0.33    -1.13
 Argentina peso         8.6225     0.00    -0.84
 Argentina peso          13.63     0.51     2.71
 (Reporting by Priscila Jordao and Walter Brandimarte; Editing
by James Dalgleish)