Slide For Energy Stocks Pressuring Latin American Markets Although Argentine Stocks Snap 3-Day Decline

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Latin American markets are mostly lower late Thursday, falling with a slide for energy stocks, including a 2% decline for the ADRs of Brazilian state-owned energy giant, Petroleo Brasileiro SA ( PBR ), also known as PetroBras.

PBR shares have been under pressure today after the company disclosed last night it will borrow $20 bln this year - exceeding its 5-year average by 63%, according to a Reuters analysis - as revenue remains flat and fuel subsidies increase the need for debt to fund its investments.

Argentina's Merval Buenos Aires Index is running counter to its regional peers, scratching out a 0.2% advance this afternoon and snapping a three-day retreat. A 3% gain for Telecom Argentina SA ( TEO ) in local trade is contributing the most to today's advance. U.S.-listed shares of the mobile communications company are up a more modest 1.0% this afternoon.

Other Merval advancers today include Tenairis SA (TS.BA, TS), with the steel-maker and rival Ternium Siderar SA (ERAR.BA, TX) both up today. TS ADRs have climbed 0.8% while TX ADRs are off 1.3% apiece.

Here's where the regional markets stand today:

- Ibovespa down 831.23 a short while ago. Now down 857.5 (-1.5%) to 55,329.

- IPC (Mexico City) down 104.35 (-0.2%) to 44,289.7.

- Santiago Index IPSA down 8.04 (-0.18%) to 4,345.34.

- Merval Buenos Aires up 12.86 (+0.37%) to 3,475.59.



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.

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This article appears in: Investing , Commodities

Referenced Stocks: PBR , TEO

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