November 9, 2017 / 3:52 PM / a year ago

EMERGING MARKETS-Brazil stocks fall as corporate updates trigger profit-taking

    By Bruno Federowski
    SAO PAULO, Nov 9 (Reuters) - Brazilian stocks fell on
Thursday after a batch of weak corporate updates triggered
profit-taking on gains from the previous day's rally.
    The benchmark Bovespa stock index fell 1.3 percent
after rising the most in a month on Wednesday.
    Blue-chip shares such as Itaú Unibanco Holding SA
and Vale SA, which had drive the advance, subtracted
the most points from the index.
    Shares of fuel distributor Ultrapar Participações SA
 were the biggest decliners after slightly
weaker-than-expected third-quarter operating profits fueled
doubt over its year-end target.
    Lender Banco do Brasil SA and petrochemical
company Braskem SA also dropped in the wake of
quarterly earnings figures.
    The move came in a week of heightened volatility as
uncertainty grew over President Michel Temer's efforts to
streamline the social security system.
    Lawmakers seem increasingly unwilling to support Temer's
austerity efforts, which contributed to driving his approval
rates to single digits. Investors see the pension reform as key
to curbing growth of public debt and stimulating the economy.
    The Brazilian real firmed 0.2 percent, seesawing in
line with other Latin American currencies. Both the Colombian
peso rose 0.1 percent.
    The Mexican peso was nearly flat as investors avoided big
bets ahead of a central bank interest rate decision.
     Mexico's annual inflation rate quickened slightly in
October, making an interest-rate cut even less likely at a
central bank meeting later in the day.
    Key Latin American stock indexes and currencies at 1720 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
 MSCI Emerging Markets              1133.26    -0.13    31.59
 MSCI LatAm                         2798.75     -0.8    20.54
 Brazil Bovespa                    73370.69    -1.33    21.82
 Mexico S&P/BVM IPC                48887.68     0.11     7.11
 Chile IPSA                         5469.41     -0.3    31.75
 Chile IGPA                        27516.37    -0.28    32.71
 Argentina MerVal                  28327.79     0.88    67.44
 Colombia IGBC                     10815.97     0.83     6.79
 Venezuela IBC                       699.15    -0.62   -97.79
 Currencies                                  daily %    YTD %
                                              change   change
 Brazil real                         3.2560     0.22    -0.21
 Mexico peso                        19.1050    -0.09     8.58
 Chile peso                           630.6     0.11     6.36
 Colombia peso                       3013.4     0.15    -0.39
 Peru sol                             3.245     0.00     5.21
 Argentina peso (interbank)         17.5500    -0.14    -9.54
 Argentina peso (parallel)            17.85     0.28    -5.77
 (Reporting by Bruno Federowski; Editing by David Gregorio)
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