SAO PAULO: A recent rally in Brazilian stocks lost steam on Thursday after shares failed to break a resistance level for the second straight session, while Mexican equities rebounded from a more than one-month low.
Brazil's benchmark Bovespa stock index edged down 0.04 percent to end at 54,963.32 points. After rising for five sessions in a row, the index failed to surmount the 55,550-point level for the second day in a row.
State-controlled lender Banco do Brasil fell 1.79 percent as investors become less optimistic about the outcome for the IPO of its BB Seguridade insurance unit.
"Many people were talking about 18 reais for the (BB Seguridade) IPO, but now people are mentioning 16 reais," said Luiz Roberto Monteiro, a broker with Renascenca in Sao Paulo.
Bank of America analysts lowered their recommendation on Banco do Brasil shares on Wednesday, citing the potential loss of value and profits stemming from the IPO.
Banco Santander Brasil retreated 2.95 percent after it reported a plunge in first-quarter earnings and rising defaults.
State-owned oil firm Petrobras fell 1.29 percent as it pulled back from a three-month high.
Among gainers, iron ore mining firm Vale SA rose 1.4 percent after first-quarter earnings beat expectations.
Shares of airline Gol Linhas Aereas rose 4.7 percent ahead of the pricing on Wednesday for the initial public offering of its Smiles SA customer loyalty unit.
Mexico's IPC index rose 0.6 percent to 42,547.47 points, recovering from its lowest close in the previous session since March 19.
Corn miller Gruma jumped 11.26 percent after reporting a surge in first-quarter profit by nearly 150 percent due to lower financing costs and a stock repurchase from US agribusiness major Archer Daniels Midland.
Top retailer Wal-Mart de Mexico rose 2.55 percent off of a one-month low that it hit in the previous session following its earnings earlier this week.
<Center><b><i>Copyright Reuters, 2013</b></i><br></center>
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