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EMERGING MARKETS-Brazilian, Chilean equities slip as political concerns weigh
November 30, 2017 / 3:04 PM / 15 days ago

EMERGING MARKETS-Brazilian, Chilean equities slip as political concerns weigh

    SAO PAULO, Nov 30 (Reuters) - Brazil's benchmark equities
index and real currency lost ground on Thursday as markets
remained jittery about the uneven progress of a pension reform
bill seen as key to shoring up the nation's fiscal health.
    President Michel Temer is looking to gain solid support for
the pension bill from the centrist Brazilian Social Democratic 
Party (PSDB). In order to whip the 308 votes needed for passage
in Brazil's lower chamber, he will also need to win the support
of a number of smaller parties.
    "The only chance now is a definitive understanding between
(the PSDB and Temer's Brazilian Democratic Movement Party) to
pressure smaller actors into entering the accord with the risk
of losing more if they remain outside," analysts at Lerosa
Investimentos wrote in a note to clients.
    The Bovespa was down 0.5 percent in early afternoon
trading, while the real slid 0.56 percent.
    Among the poor performers on the Bovespa was energy holding
company CPFL Energia SA, which plummeted more than 9
percent.
    CPFL will launch a tender offer this afternoon, as China's
State Grid Corp, its controlling shareholder, plans to buy out
minority shareholders in order to delist the
utility.
    Airlines including Gol Linhas Aéreas Inteligentes SA
 dropped after Brazil's Senate failed on Wednesday to
pass a cap on taxes for aviation fuels. 
    Chile's blue-chip IPSA index also lost ground,
falling 0.58 percent, as investors remained wary about a tight
Dec. 19 presidential election. 
    In addition to political concerns, a union at Teck
Resources' Quebrada Blanca copper mine voted to
strike, the union said on Thursday, raising fears of tricky
labor negotiations in the world's top copper
exporter.   
    
    ($1 = 3.26 reais)
    
Key Latin American stock indexes and currencies at 1435 GMT:

    
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets           1123,00     -1,61     32,37
                                                    
 MSCI LatAm                      2747,53      -1,2     18,81
                                                    
 Brazil Bovespa                 72339,55      -0,5     20,11
                                                    
 Mexico S&P/BVM IPC             47627,49      0,01      4,35
                                                    
 Chile IPSA                      4983,68     -0,58     20,05
                                                    
 Chile IGPA                     25083,98     -0,53     20,98
                                                    
 Argentina MerVal               27057,19      0,57     59,93
                                                    
 Colombia IGBC                  10853,46      0,05      7,16
                                                    
 Venezuela IBC                   1296,81      11,1    -95,91
                                                    
                                                            
 Currencies                                daily %     YTD %
                                            change    change
                                  Latest            
 Brazil real                      3,2577     -0,56     -0,26
                                                    
 Mexico peso                     18,5535      0,06     11,81
                                                    
 Chile peso                        644,6     -0,08      4,05
                                                    
 Colombia peso                   3004,21     -0,04     -0,09
 Peru sol                          3,233      0,03      5,60
                                                    
 Argentina peso (interbank)      17,4000      0,20     -8,76
                                                    
 Argentina peso (parallel)         18,07      0,39     -6,92
                                                    
 


    



 (Reporting by Gram Slattery; Editing by Meredith Mazzilli)
  

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