The MSCI Latin American stock index rose 0.05 percent to 4,207.94 after reaching its highest level since August 2011 on Friday. Mexico's stock market was closed for the Constitution Day Memorial holiday.
Shares fell after Greek politicians failed to agree to terms of a new bailout ahead of a self-imposed Monday deadline and postponed a meeting until Tuesday, adding to fears the country is edging closer to a messy default that could sap investor appetite for riskier assets.
"The Greece question is still reverberating throughout the market as the principal focus among investors," said Marcelo Varejao, an analyst with Corretora Socopa in Sao Paulo. "In a day without many indicators on the agenda, we're seeing people use this as an opportunity to take profits."
Brazil's benchmark Bovespa stock index snapped a four-day rally, sliding 0.63 percent to 64,809.70, its biggest intraday loss in over three weeks. Still, a technical indicator known as the index's relative strength index remained in so-called "overbought" territory, suggesting shares have more room to fall in coming days.
"We've seen the Bovespa rising over the past few sessions, so there is room for some profit taking, but that could be limited or even counteracted by foreign flows, especially if we see a solution in Greece," Varejao said.
The Bovespa has gained nearly 15 percent this year, returning much of last year's 18 percent loss as foreign investors poured in an additional 7.2 billion reais ($4.18 billion) in January, the biggest monthly inflow since Brazil adopted the real in July 1994.
Preferred shares of Vale, the world's largest iron-ore producer, helped lead the index lower, falling 0.43 percent, while Hypermarcas, Brazil's largest producer of disposable consumer goods, dropped 2.46 percent.
Banco Santander Brasil fell 1.37 percent, retreating from a rally that has seen the shares rise nearly 35 percent since late November. Bank of America Merrill Lynch raised its recommendation for the shares to "buy" on expectation that fast credit growth and cost controls will boost profit.
Preferred shares of state-controlled oil company Petrobras fell 0.57 percent. The company announced late Friday that it had found good-quality light oil in the Amazon region, but traders said the size of the find was not significant enough to buoy the stock. Chile's IPSA index snapped a five-day rally, falling 0.38 percent to 4,365.42.
Regional energy generator Endesa Chile drove the index lower, falling 1.18 percent, while its parent company, energy group Enersis fell 1.02 percent. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment