Latin American Markets Mostly Lower; Petrobras Undercuts Stronger Sectors in Brazilian Trading

By Staff,

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Latin American markets are mostly lower late Tuesday, with Brazil's Bovespa index sliding almost 0.5% after the country's state-owned oil and gas company reported disappointing FY12 earnings and cut its dividend in order to save cash and pay for its investment plans.

U.S.-listed shares of Petroleo Brasileiro ( PBR ), also known as Petrobras, are down over 6% and have hit 52 week lows after the company last night reported a 36% year-over-year decline in FY12 profit to 21.2 billion Brazilian reais, or about $10.65 billion.

A rise in shares of Itau unibanco Holding SA ( ITUB ) is helping offset the decline for Petrobras ( PBR ) and other energy firms today after Brazil's second-largest bank reported a fall in loan delinquencies and a better-than-expected outlook for bad-loan provisions this year.

Consumer stocks also are higher today, including a 2% gain for GOL Linhas A ( GOL ) despite the Brazilian airline saying it will take a $70.6 million charge against its Q4 results following the shutdown of its Webjet unit, news that was announced in November 2012.

Here's where the regional indices stand today:

Ibovespa was down 275.55. Now down 299.5 (-0.5%) to 59,276.

MerVal Buenos Aires down 82.86 (-2.42%) to 3,345.8.

IPC (Mexico City) was down 252.83. Now 177.8 lower (-0.4%) to 45,594.

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) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: GOL , ITUB , PBR

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