Latin American Markets Mostly Lower; Brazilian Home-Builder Gafisa Slumps Following Weak Q1 Results
Latin American markets are mostly lower today, including a 2% decline for the Merval Buenos Aires index tracking Argentine stocks and a 5% drop for electric utility Edenor SA (EDN.BA, EDN) in local trade. U.S.-listed shares of EDN are slightly higher very light volume.
Also weighing on the Merval index today is Sociedad Comercial del Plata SA (COME.BA), a diversified holding company with interests in energy, rail transport, real estate and tourism, falling nearly 5%. Petrobras Argentina SA (PESA.BA, PZE), the Argentine subsidiary of the Brazilian state-run energy company, is down over 3%.
Here's where the regional markets stand today:
- Ibovespa was down 519.75. Now down 473.93 (-0.9%) to 54,633.87.
- IPC (Mexico City) was up 191.96. Now up 128.78 (+0.3%) to 41,870.3.
- Santiago Index IPSA down 19.77 (-0.5%) to 4,300.2.
- Merval Buenos Aires down 89.17 (-2.4%) to 3,623.3.
In individual company news, ADRs of Gafisa SA ( GFA ) are down more than 4% to $3.95 after the Brazilian homebuilder late Friday reported a wider-than-expected Q1 net loss as sales cancellations at its low-cost Tenda unit and mid-range Gafisa division dragged on profitability.
GFA posted a afisa booked a 55 mln reais ($27.2 million) Q1 loss, slightly better than the 31.5 mln reais loss a year ago, according to a securities filing. Four of the analysts in a Reuters survey were looking for a 27-mln-reais loss while the remaining two were expecting a 59-mln reais profit.
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