News - Briefing de Mercado

EMERGING MARKETS-Mining giant Vale drives losses on Brazil stock market

04 de Abril de 2013 10h31
Asher Levine

* Brazil court postpones decision on foreign tax case

    * Vale shares slip 2 pct

    * Brazil Bovespa falls 0.42 pct, Mexico IPC up 0.15 pct


Mining firm Vale SA drove losses in Brazilian stocks on Thursday

after Brazil's Supreme Court postponed a key tax ruling that could

affect the company's bottom line. 


Mexico's IPC index edged higher, while Chile's bourse

rebounded from its lowest closing level this year.     


Brazil's Supreme Court late Wednesday put off a ruling that

will decide on how the foreign profits of companies like Vale

are treated by tax authorities. A ruling would determine whether

Vale, the world's No. 1 iron ore miner, must pay an estimated

$15.2 billion in taxes on earnings from its operations abroad.


Vale's preferred shares had risen nearly 6 percent

on Wednesday as investors stepped up bets that a ruling would be

made in the company's favor.


The stock returned some of those gains on Thursday, falling

2.05 percent and contributing most to benchmark Bovespa stock

index's 0.42 percent decline.


"The fact that the decision was delayed explains some of the

drop we are seeing ... and we will continue to see volatility in

the shares until we have a firm decision on the case," said

Ricardo Zeno, a partner with brokerage AZ Investimentos in Rio

de Janeiro.


The ruling will also impact other multinationals such as

steelmaker Cia Siderurgica Nacional and chemical

maker Braskem SA. Shares in both companies fell about

1 percent.


Mexico's IPC index inched 0.15 percent higher to

43,782.28 points, as a 0.7 percent gain by retail giant Wal-Mart

de Mexico helped offset a 1.2 percent loss by

conglomerate Alfa.


Shares of telecommunications firm America Movil,

controlled by billionaire Carlos Slim, were little-changed after

Mexico's antitrust watchdog said on Wednesday it would

temporarily suspend a $53 million fine it had levied against the

company's fixed-line unit. 


Chile's IPSA index ended a three-day slide, rising

0.24 percent on Thursday to 4,357.92, as shares of conglomerate

Copc added 1.14 percent.


The index had closed at its lowest level of the year on



Latin America's key stock indexes at 1404 GMT:


 Stock indexes                                          daily %        YTD %

                                        Latest             change         change

 MSCI LatAm                    3,765.69           -0.01            -0.83


 Brazil Bovespa               55,328.60          -0.42             -9.23


 Mexico IPC                    43,782.28           0.15              0.17


 Chile IPSA                     4,357.92            0.24              1.31


 Chile IGPA                     21,404.01         0.17               1.58


 Argentina MerVal            3,313.81          0.23               16.10


 Colombia IGBC             13,771.88          0.39              -6.41


 Peru IGRA                    19,579.19         0.15               -5.09


 Venezuela IBC              632,736.88       0.08               34.21

Fonte: Reuters


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