February 5, 2019 / 2:40 PM / 7 months ago

EMERGING MARKETS-Brazil stocks fall as financials drag, Mexico's peso firms

    Feb 5 (Reuters) - Brazil stocks retreated from all-time
highs on Tuesday as shares of the country's largest private
lender, Itau Unibanco Holding SA, weighed, while
Mexico's peso was on course for its best day in two weeks.
    Bucking a rise in broader emerging markets and global
stocks, Brazil's Bovespa stock index slipped 0.4 percent
as shares of Itau Unibanco fell 2.8 percent after its loan
growth guidance disappointed analysts.
    The bank reported quarterly earnings Monday that matched
estimates, and increased its payout ratio to shareholders for
the second year in a row, but shares slipped on Tuesday as
investors reacted to the company's loan growth guidance that
analysts consider less aggressive than its peers.

    Shares of the lender's largest shareholder, Itaúsa
Investimentos SA, dipped 2.5 percent. 
    Brazilian food processor BRF SA rose after it
announced the appointment of former Petrobras Chief Executive
Ivan Monteiro as its new chief financial officer.
    Brazil's currency barely moved against a steady
dollar. The central bank is expected to keep the benchmark rate
unchanged at its meeting on Wednesday, a Reuters poll showed.
 
    Investors will also be eagerly awaiting the results of a
ministerial meeting led by the Vice President Hamilton Mourao on
Tuesday at which pension reforms will be the theme.
    Meanwhile, the Mexican peso firmed 0.3 percent and
looked set to log its biggest one-day gain since Jan 23.
    Goldman Sachs analysts said in a note valuations of high
yielding emerging market currencies are more attractive than
they were a year ago. This is especially true for Mexico and
Colombia, where there are opportunities for attractive total
returns in local fixed income and currency markets.
    In Chile, the peso and stocks were little changed. 

    Key Latin American stock indexes and currencies at 1359 GMT:
    Stock indexes             Latest    Daily %
                                         change
 MSCI Emerging Markets         1049.19      0.11
                                        
 MSCI LatAm                    2952.08     -0.41
                                        
 Brazil Bovespa               98129.61     -0.47
                                        
 Mexico IPC                          -         -
                                        
 Chile IPSA                    5474.84      0.03
                                        
 Argentina MerVal                    -         -
                                        
 Colombia IGBC                       -         -
                                        
                                                
       Currencies             Latest    Daily %
                                         change
 Brazil real                    3.6707      0.04
                                        
 Mexico peso                   19.0472      0.30
                                        
 Chile peso                      652.8     -0.11
                                        
 Colombia peso                       -         -
 Peru sol                            -         -
                                        
 Argentina peso                      -         -
 (interbank)                            
                                        
 

 (Reporting by Susan Mathew in Bengaluru;)
  
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