June 9, 2016 / 4:11 PM / 2 years ago

EMERGING MARKETS-Latam stocks, currencies fall as traders book profits from rally

By Bruno Federowski
    SAO PAULO, June 9 (Reuters) - Latin American stocks and
currencies fell across the board on Thursday as traders locked
in gains following a week-long rally.
    Emerging market assets have been supported recently by
shrinking bets on a U.S. interest rate increase in the
short-term that could reduce the allure of high-yielding assets.
    The Federal Reserve is likely to wait until September to
raise rates, according to a Reuters poll, after news of a sharp
drop in hiring. 
    The Colombian peso has jumped almost 6 percent so far
this month, while the Mexican benchmark IPC stock index 
rose 1.8 percent.
    Both markets have also benefited from a rally in oil prices,
which hit their highest levels this year earlier on Thursday on
the back of supply disruptions in Nigeria.
    But traders took profits later in the day, driving down
prices of commodities and shares of exporters of basic products.
    Brazil's benchmark Bovespa stock index fell more
than 1 percent, weighed down by shares of state-controlled oil
company Petróleo Brasileiro SA.
    Bradesco SA fell 0.9 percent following a more
than 3 percent jump the previous day. Regulators approved the
bank's purchase of HSBC Holding Plc's local unit on
Wednesday, as long as it refrains from making any rival
acquisitions for at least 30 months. 
    Shares of Gol Linhas Aéreas Inteligentes SA,
which are not part of the benchmark index, rose 6.7 percent
after a lower house committee voted to allow foreigners to own
up to 49 percent of domestic airlines, up from 20 percent. The
bill still has to be sanctioned by full-house votes in the House
and the Senate.
    The company also said on Thursday it was extending the
deadline for a bond swap to June 15, while maintaining the terms
of the exchange. 
    Key Latin American stock indexes and currencies at 1555 GMT:
 Stock indexes                                daily %   YTD %
                                               change  change
 MSCI Emerging Markets                836.30    -0.72    6.07
 MSCI LatAm                          2184.95    -1.14   20.79
 Brazil Bovespa                     50924.02    -1.37   17.47
 Mexico IPC                         46060.73    -0.44    7.17
 Chile IPSA                          3997.22    -0.39    8.61
 Chile IGPA                         19741.28    -0.33    8.76
 Argentina MerVal                   13503.46    -0.89   15.66
 Colombia IGBC                       9955.11    -0.09   16.47
 Venezuela IBC                      15281.45    -1.19    4.75
 Currencies                                   daily %   YTD %
                                               change  change
 Brazil real                          3.3924    -0.70   16.35
 Mexico peso                         18.2925    -0.94   -5.81
 Chile peso                            677.7    -0.58    4.72
 Colombia peso                       2943.67    -0.77    7.66
 Peru sol                              3.309    -0.36    3.17
 Argentina peso (interbank)          13.8200     0.65   -6.06
 Argentina peso (parallel)             14.25    -0.14    0.14

 (Reporting by Bruno Federowski; Additional reporting by Paula
Arend Laier; Editing by Meredith Mazzilli)
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