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

By Staff,

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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 Nasdaq, Inc.

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

This article appears in: Investing Commodities
Referenced Stocks: PBR , TEO

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