Tuesday, January 8, 2013

Greece weighs on Brazil stocks, Petrobras tanks

SAN FRANCISCO (MarketWatch) � Brazil�s benchmark index closed down more than 2% on Friday after euro-zone officials demanded additional austerity measures from Greece and delayed approval of bailout funds. Market sentiment was also burdened by big losses in Petroleo Brasileiro SA shares after the company reported a sharp drop in profit.

Click to Play U.S. stocks drop on concerns over Greece

Stocks fall as concerns over whether Greece will be able to receive bailout funds prompted a pullback. Photo: AP

The Ibovespa index BR:BVSP �fell 1,532.63 points, or 2.3%, to finish at 63,997.86. For the week, the index shed 1.9%.

Greece remained an albatross for stocks after euro-zone finance ministers made it clear that they will not disburse 130 billion euro ($172 billion) in financial assistance unless Greece demonstrates its commitment to pushing ahead with additional spending cuts. Read details on Greece�s latest problems

In Sao Paolo, Petrobras PBR �BR:PETR4 �sank 7.8% after reporting a sharp drop in quarterly earnings. The oil giant said late Thursday its fourth-quarter net profit fell to 5.05 billion Brazilian reals ($2.93 billion) from BRL10.6 billion a year ago. It also said several high-level executives were replaced following the appointment of a new chief executive. Read more on Petrobras� quarterly results

Usinas Siderurgicas de Minas Gerais BR:USIM3 �and Gerdau SA BR:GGBR4 �were also big decliners.

At the other end, gains by Centrais Electricas Brasileiras BR:ELET6 and Companhia Energetica de Sao Paulo BR:CESP6 �helped to slow the index�s decline.

Other Latin American equity markets were mostly weak with Mexico�s IPC MX:IPC �down 93.06 points to 38,149.22 while Argentina�s Merval AR:MERV �was off by 27.11 points to 2,721.89.

Chile�s IPSA CL:IPSA bucked the trend to rise 6.79 points to 4,410.74.

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