By Carla Mozee
Latin American stock markets fell Friday, with the last day of
trading in May marked by fresh worries about Europe's fiscal
conditions as Spain's sovereign-debt rating was downgraded.
The indexes tracking the largest regional equity markets
finished in the red for the month, with losses underscoring
investor fears that debt-troubled nations in Europe, including
Greece, Spain and Portugal, will derail worldwide economic recovery
efforts.
On Friday, Fitch Ratings cut its rating on Spain to AA+ from
AAA, citing concern that the country's growth rate will be hurt as
the country moves to reduce its debt load.
Brazil's Bovespa fell 8.3% in May, its worst monthly decline
since a nearly 25% slide in October 2008. Mexico's IPC dropped
3.5%, its biggest decline since January.
Argentina's Merval tumbled 8.2%, the sharpest decline since
October 2008 when the index sank 37%. Chile's IPSA fell 1.4%.
On Friday in Sao Paulo, the Bovespa fell 0.2% to 61,946.99, as
finance, home building, utility stocks slumped. Decliners included
home builders Gafisa (GFA) and PDG Realty, down 1.7% and 1.9%,
respectively. Iron ore giant Vale (RIO) fell 0.4%, while steel
producer Gerdau (GGB) managed to pick up 0.7%.
Also lower were shares of Vivo Participacoes (VIV), down 3.3%.
The largest wireless services provider in Brazil is in the middle
of a battle between its parent companies for full control of Vivo.
Bloomberg News reported Friday that Portugal Telecom (PT) is
talking to investors about launching a potential counterbid for
Telefonica's (TEF) 50% stake in Vivo.
But shares of market heavyweight Petrobras (PBR) traded 1.2%
higher. Still, investor uncertainty about a major capitalization
plan involving the oil company and the Brazilian government has
left the preferred shares down about 14% in May.
In Mexico City, the IPC index closed Friday with a loss of 1.6%
at 31,547.55.The Merval slipped 0.2% to 2,199.02, but Chile's IPSA
outperformed its rivals with a 0.6% rise to 3,833.91.
Among exchange-traded funds, the iShares MSCI Chile Investable
Index Fund (ECH) fell 1.8% in May. The iShares MSCI Mexico Index
Fund (EWW) logged a monthly loss of 7.7%, the deepest pullback
since February 2009. The iShares MSCI Brazil Index Fund (EWZ)
tumbled 12%, its worst showing since January.