May 5, 2016 / 8:52 PM / 2 years ago

EMERGING MARKETS-Latam stocks slip as Brazil banking shares fall

(Updates prices, adds Mexico)
    BRASILIA, May 5 (Reuters) - Latin American stocks edged
lower on Thursday, dragged down by the financial sector, mostly
in Brazil, although higher crude prices helped lift currencies
and stocks of oil producers.
    Markets in Mexico also slipped after oil prices eased from
their highs and the U.S. dollar rose to a one-week high against
a basket of currencies as traders closed out profitable bets
against the greenback. 
    The MSCI Latin American stock index fell 1.4
percent, with Brazil's Bovespa stock index 
underperforming other regional benchmarks as shares of major
banks such as Bradesco SA and Itau Unibanco Holding
SA fell more than 1 percent.
    Brazilian markets have gone through a volatile week after
three months of solid gains as investors await the
opposition-controlled Senate's May 11 vote on whether to try
President Dilma Rousseff on charges that she broke budget laws.
Vice President Michel Temer would automatically become acting
president if she is put on trial. 
    Shares in Bradesco fell 2.6 percent after UBS analysts led
by Phillip Finch downgraded the stock to "neutral" from "buy."
Bradesco has gained 45 percent so far this year, reflecting a
broad rally in Brazilian markets on hopes Temer would be more
investor-friendly than Rousseff.
    Latam currencies had small gains, with the Chilean peso
 outperforming peers by strengthening nearly 0.6 percent
after data on Thursday showed economic activity rose in March,
beating forecasts. 
    However, oil prices settled off their highs due to a
rebounding dollar and a huge U.S. stockpile, dragging down
Mexico's peso 0.4 percent to its lowest in nearly a
month. Mexico's IPC stock index also fell 0.4 percent.
    Key Latin American stock indexes and currencies at 1951 GMT:
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets            807.51     -0.74      2.44
 MSCI LatAm                      2158.29     -1.33     19.55
 Brazil Bovespa                 51718.81     -1.59     19.31
 Mexico IPC                     45149.47     -0.44      5.05
 Chile IPSA                      4014.44      0.21      9.08
 Chile IGPA                     19734.64      0.19      8.72
 Argentina MerVal               13282.44      0.47     13.77
 Colombia IGBC                   9607.56     -1.19     12.40
 Venezuela IBC                  15367.60      0.14      5.34
 Currencies                                daily %     YTD %
                                            change    change
 Brazil real                      3.5393     -0.02     10.33
 Mexico peso                     17.8645     -0.36     -3.68
 Chile peso                       667.73      0.58      5.91
 Colombia peso                    2949.1      0.12      6.95
 Peru sol                          3.319      0.33      2.78
 Argentina peso (interbank)      14.2400      0.04     -9.69
 Argentina peso (parallel)         14.53      0.95     -1.82
 (Reporting by Silvio Cascione,; Editing by Richard Chang and
Diane Craft)
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