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Latin American Mostly Lower; Weak Factory Data Weighs on Brazilian Banks, Mining Sector

4/2/2013 12:11:00 PM
By: MT Newswires
Referenced Stocks:BSBR;ITUB;VALE

Latin American markets are mostly lower today, although the IPC index tracking Mexican equities is holding on to a small advance to recoup yesterday's decline and carrying the market gauge back over its 44,000 mark.

Industrial output at Brazilian factories contracted more than expected during February, bolstering views that the country's central bank will not raise interest rates anytime soon. The interest-rate speculation was seen keeping a lid on financial shares, with American depository shares of Banco Santander Brasil SA ( BSBR ) falling nearly 1.4% and Itau Unibanco Holding SA ( ITUB ) retreating about 0.9%.

Mining stocks also are weaker today following the Brazilian industrial data as well as a fall for gold, silver and copper today in global commodities trading.

Brazilian miner Vale SA ( VALE ) is the exception today, rising 0.2% after approving the initial installment of a $2.25-bln dividend payment to shareholders, according to a securities filing. The $0.437 per share payout is expected April 30 for NYSE shareholders of record on April 19. The record date for Ibovespa shares is April 16.

Here's where the regional markets stood at mid-day today:

- Ibovespa down 116.56 (-0.21%) to 55,785.62

- IPC (Mexico City) up 193.18 (+0.44%) to 44,125.70

- Santiago Index IPSA down 3.21 (-0.07%) to 4,412.48

- Merval Buenos Aires closed