SAO PAULO: Brazilian stocks fell on Thursday after a batch of weak corporate updates triggered profit-taking on gains from the previous day’s rally.
The benchmark Bovespa stock index fell 1.3 percent after rising the most in a month on Wednesday.
Blue-chip shares such as Ita? Unibanco Holding SA and Vale SA, which had drive the advance, subtracted the most points from the index.
Shares of fuel distributor Ultrapar Participa??es SA were the biggest decliners after slightly weaker-than-expected third-quarter operating profits fueled doubt over its year-end target.
Lender Banco do Brasil SA and petrochemical company Braskem SA also dropped in the wake of quarterly earnings figures.
The move came in a week of heightened volatility as uncertainty grew over President Michel Temer’s efforts to streamline the social security system.
Lawmakers seem increasingly unwilling to support Temer’s austerity efforts, which contributed to driving his approval rates to single digits. Investors see the pension reform as key to curbing growth of public debt and stimulating the economy.
The Brazilian real firmed 0.2 percent, seesawing in line with other Latin American currencies. Both the Colombian peso rose 0.1 percent.
The Mexican peso was nearly flat as investors avoided big bets ahead of a central bank interest rate decision.
Mexico’s annual inflation rate quickened slightly in October, making an interest-rate cut even less likely at a central bank meeting later in the day.
Source: Brecorder.com
