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

By: MT Newswires
Posted: 2/5/2013 1:30:00 PM
Referenced Stocks: GOL;ITUB;PBR

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.