Latin American Markets Mostly Lower; Brazilian Home-Builder Gafisa Slumps Following Weak Q1 Results

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Latin American markets are mostly lower today, including a 2% decline for the Merval Buenos Aires index tracking Argentine stocks and a 5% drop for electric utility Edenor SA (EDN.BA, EDN) in local trade. U.S.-listed shares of EDN are slightly higher very light volume.

Also weighing on the Merval index today is Sociedad Comercial del Plata SA (COME.BA), a diversified holding company with interests in energy, rail transport, real estate and tourism, falling nearly 5%. Petrobras Argentina SA (PESA.BA, PZE), the Argentine subsidiary of the Brazilian state-run energy company, is down over 3%.

Here's where the regional markets stand today:

- Ibovespa was down 519.75. Now down 473.93 (-0.9%) to 54,633.87.

- IPC (Mexico City) was up 191.96. Now up 128.78 (+0.3%) to 41,870.3.

- Santiago Index IPSA down 19.77 (-0.5%) to 4,300.2.

- Merval Buenos Aires down 89.17 (-2.4%) to 3,623.3.

In individual company news, ADRs of Gafisa SA ( GFA ) are down more than 4% to $3.95 after the Brazilian homebuilder late Friday reported a wider-than-expected Q1 net loss as sales cancellations at its low-cost Tenda unit and mid-range Gafisa division dragged on profitability.

GFA posted a afisa booked a 55 mln reais ($27.2 million) Q1 loss, slightly better than the 31.5 mln reais loss a year ago, according to a securities filing. Four of the analysts in a Reuters survey were looking for a 27-mln-reais loss while the remaining two were expecting a 59-mln reais profit.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

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