EMERGING MARKETS-Brazil stocks fall after Oi files for bankruptcy protection

martes 21 de junio de 2016 11:44 GYT
 

By Bruno Federowski and Priscila Jordão
    SAO PAULO, June 21 (Reuters) - Brazilian stocks fell on
Tuesday after Oi SA filed for Brazil's largest ever bankruptcy
protection, weighing on banks that lent money to the country's
No. 1 fixed-line phone carrier.
    Preferred shares of Oi SA, which are not part of
Brazil's benchmark Bovespa stock index, plunged as much
as 31 percent to a fresh record low. Common shares 
dropped over 20 percent. 
    The company petitioned late on Monday to seek protection
from creditors on 65.4 billion reais ($19.2 billion) in
liabilities after failing to reorganize operations amid a deep
recession. 
    The move could force lenders to raise loan-loss provisions
sharply while also setting a dangerous precedent for indebted
companies, Credit Suisse analysts wrote in a client note.
 
    Shares of Itaú Unibanco SA dropped 2.3 percent,
scraping the most points off the benchmark index. Shares of
state-controlled Banco do Brasil SA, which Credit
Suisse said might have the largest exposure to Oi, fell 4.7
percent.
    Traders said outflows stemming from the slump in Oi shares
weighed on the country's real currency, which was nearly
flat in early afternoon trading.
    Shares of Oi competitors TIM Participações SA and
Telefônica Brasil SA rose 1.2 percent and 0.1
percent, respectively.
    Kroton SA rose 1.4 percent after Brazil's largest
for-profit education firm sweetened the terms of an unsolicited
bid for Estácio Participações SA in an effort to
fight off a rival offer. Estácio shares fell 0.3 percent.
 
    Estácio's No 2 shareholder, the Zaher family, plans to vote
against Kroton's bid, a source with knowledge of the matter told
Reuters on Tuesday. 
    Other Latin American currencies inched up on optimism about
a possible British vote for remaining in the European Union.
Recent polls have generally shown a small lead for the "Remain"
vote in Thursday's referendum.

    Key Latin American stock indexes and currencies at 1515 GMT:
 Stock indexes                              daily %   YTD %
                                             change  change
                                  Latest             
 MSCI Emerging Markets              824.74     0.43     3.4
 MSCI LatAm                        2146.19     -0.5   17.88
 Brazil Bovespa                   50100.58    -0.45   15.57
 Mexico IPC                       45659.38    -0.26    6.24
 Chile IPSA                        3971.96    -0.23    7.93
 Chile IGPA                       19629.79     -0.2    8.14
 Argentina MerVal                 13532.34     3.51   15.91
 Colombia IGBC                     9820.57    -0.14   14.90
 Venezuela IBC                    14075.98    -0.22   -3.51
                                                           
 Currencies                                 daily %   YTD %
                                             change  change
                                                     
                                    Latest           
 Brazil real                        3.3950     0.11   16.26
 Mexico peso                       18.6360     0.09   -7.54
                                                     
 Chile peso                          675.7     0.34    5.03
 Colombia peso                      2971.5     0.06    6.66
 Peru sol                           3.2839     0.12    3.96
 Argentina peso (interbank)        13.8675     0.38   -6.38
                                                     
 Argentina peso (parallel)           14.38     0.28   -0.76
                                                     
 
 (Reporting by Bruno Federowski and Priscila Jordão; Additional
reporting by Guillermo Parra-Bernal; Writing by Bruno
Federowski; Editing by Chris Reese)