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EMERGING MARKETS-Brazil stocks fall again on profit-taking
September 28, 2017 / 6:14 PM / 3 months ago

EMERGING MARKETS-Brazil stocks fall again on profit-taking

    By Bruno Federowski
    SAO PAULO, Sept 28 (Reuters) - Brazilian stocks fell for a
sixth straight session on Thursday extending a wave of
profit-taking that followed a string of record highs earlier
this month.
    Brazil's benchmark Bovespa stock index fell 3.1
percent in six days, the largest such decline since May.
    Blue chips and state-owned firms, which have led this year's
rally, were among the biggest decliners. Shares of miners and
steelmakers also fell sharply, tracking lower iron ore prices.
    The selloff came on the heels of fading optimism over
President Michel Temer's reform agenda, for many investors a key
step to boosting long-term economic growth.
    Lawmaker support for Temer, who is facing corruption
accusations that may send him to trial before the Supreme Court,
has declined in the lower house as his approval rates plummeted.

    "After several months of market optimism, the political
newsflow has soured investor mood," Ignacio Crespo, an economist
at Guide Investimentos brokerage, said.
    The country's currency, however, strengthened 0.5 percent,
leading gains among Latin American currencies due to
expectations of capital inflows stemming from an oil rights
auction and the sale of several power dams.

    The Mexican peso firmed 0.1 percent after hitting
its weakest since July, while the Chilean peso followed
copper prices higher.
    
    Key Latin American stock indexes and currencies at 1755 GMT:
 Stock indexes                     Latest        Daily  YTD pct
                                                   pct   change
                                                change  
 MSCI Emerging Markets               1,073.11    -0.51    25.08
 MSCI LatAm                          2,888.53    -0.07     23.5
 Brazil Bovespa                     73,591.42    -0.28    22.19
 Mexico S&P/BVM IPC                 50,124.64    -0.09     9.82
 Chile IPSA                          5,309.13     0.18    27.89
 Chile IGPA                         26,528.67      0.2    27.95
 Argentina MerVal                   25,550.08      1.1    51.02
 Colombia IGBC                      11,088.75    -0.04     9.49
 Venezuela IBC                     474,126.25     2.22  1395.42
                                                               
 Currencies                            Latest    Daily  YTD pct
                                                   pct   change
                                                change  
 Brazil real                           3.1782     0.45     2.23
 Mexico peso                          18.1850     0.12    14.07
 Chile peso                            636.05     0.28     5.45
 Colombia peso                       2,942.35    -0.22     2.01
 Peru sol                               3.266     0.15     4.53
 Argentina peso (interbank)           17.5250     0.31    -9.42
                                                        
 Argentina peso (parallel)              17.93     0.33    -6.19
                                                        
 
 (Reporting by Bruno Federowski; Editing by Chizu Nomiyama)
  

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