Latin American Stocks Mixed as Brazil Shares Show Some Steel In Bounce Back From Monday Declines


Latin American markets are mixed in late trading Tuesday, with Brazil's Ibovespa bouncing back from Monday's decline after the nation's second largest bank company reported Q4 results that disappointed traders. But the Ibovespa also appears to be again stymied by efforts to carry the market measure much above the 60,000 mark, running into the same technical resistance it has struggled with for nearly two weeks.

Steel-makers are helping lift the Brazilian market into positive territory following a report by Goldman Sach analyst Marcelo Aguiar concluding recent declines for Brazilian steel shares seemed "excessive."

U.S.-listed shares of Gerdau S.A. ( GGB ) are up 2%.

Here's where the regional markets stand this afternoon:

- Ibovespa was up 114.83 a short while ago. Now up 84.5 (+0.14%) to 60,111.65.

- IPC (Mexico City) has turned positive, now up 18 (0.04%) to 45,930.

- Santiago Index IPSA hasn't changed much, now down 9.3 (-0.24%) to 3,887.58.

- Merval Buenos Aires was up 55. Now up 66.5 (+2%) to 3,408.7.

In other company news, Banco Bradesco S.A. ( BBD ) management appear to have done little to reassure investors during a conference call this morning discussing the bank's Q4 results. U.S.-traded ADRs of the company slid 2.8% on Monday after reporting a $0.37 a share profit, ex items, up compared to the year-ago period but trailing analyst expectations by $0.02.

BBD also sees profit margins coming under pressure in upcoming quarters despite an expected rise in loan volume. But during the conference call today, CEO Luis Carlos Trabuco reportedly said BBD has no plans to grow through M&A, instead saying "this is the moment to intensify our focus on organic growth."

Local media have repeatedly linked Bradesco to a potential purchase of part or all assets of Banco Santander SA ( BSBR ). Both banks have denied such reports several times, according to Reuters.

The stock is down today about 0.6% per ADR and is now down about 3.5% since the Q4 earnings announcement. BSBR is up about 0.4% this afternoon.

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

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: BBD , BSBR , GGB

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