EMERGING MARKETS-Latam stocks down as G20 looms, Mexico gains

* Bovespa down 0.71 pct, Mexico’s IPC up 0.23 pct

* Petrobras gains after new drilling sizes Tupi field

* Mexico’s IPC set for eighth straight weekly gain
(Adds Mexico commentary, updates prices)

By Rodolfo Barbosal and Caroline Stauffer

SAO PAULO/MEXICO CITY, Oct 22 (BestGrowthStock) – Latin American
stocks fell on Friday as investors saw uncertainty ahead of a
Group of 20 nations meeting that will tackle global trade,
currency and macroeconomic imbalances.

While a clear accord is seen unlikely, Brazil and Chile
have both taken steps recently to curb the rapid appreciation
of their currencies and investors fear additional measures
could be on the way. See [ID:nN18280200] and [ID:nN21292275]

“We haven’t heard anything concrete from the G20, but the
real news might come this weekend,” said Luiz Roberto
Monteiro, a trader with Souza Barros brokerage in Sao Paulo.

The MSCI Latin American stocks index (.MILA00000PUS: ) eased
down 0.8 percent, looking to close down on the week after
marking six straight weeks of gains.

Brazil’s blue-chip Bovespa index (.BVSP: ) lost 0.71 percent
while Chile’s IPSA shed 0.23 percent.

Vale (VALE5.SA: ) led losses on the Bovespa with shares
sagging 1.14 percent.

A Brazilian government official told Reuters on Thursday
that the next administration will likely pursue an increase in
mining royalties as part of a broad industry overhaul.
[ID:nN21360146]

Increased royalties pose a threat to Vale’s exports. The
Rio de Janeiro-based company is the world’s largest iron ore
exporter.

Shares of BM&FBovespa (BVMF3.SA: ) rose 1.6 percent. The
stock is down 8 percent from the beginning of the week on
concerns higher taxes on foreign purchases of Brazilian bonds
and derivatives could reduce trading volumes at the exchange.

Exchange Chief Executive Edemir Pinto told reporters in a
conference call on Thursday he does not expect tax increases on
foreign investments to extend to the country’s equity market.
[ID:nN21272803]

Preferred shares of Petrobras (PETR4.SA: ) were up 0.17
percent after tumbling 8.5 percent over the previous three
sessions.

The state-run oil company said in a securities filing on
Thursday that a new drilling confirmed the potential size of
the massive Tupi field at 5 billion-8 billion barrels of oil
equivalent.

MEXICO OUTPERFORMS

Mexico’s benchmark IPC index (.MXX: ) added 0.23 percent to
35,045, heading for its eight straight week of gains.

Analysts said volumes had been low for the week because a
meeting took Afores, Mexico’s private pension funds and top
institutional investors, out of the market.

Top retailer Wal-Mart de Mexico led gains, adding 2.8
percent.

“Walmex broke the 32.5 technical level which marked ‘buy'”
said Gerardo Roman,” head of stock trading at Actinver exchange
in Mexico City.

The world’s No. 3 cement maker Cemex (CMXCPO.MX: ) gained 0.8
percent.

The northern Mexico-based company will be a main providers
of cement for the Gaoyin project in Tianjin, China, analysts
from Santander in Mexico City said in a report.

The project will be one of the largest buildings in Asia on
completion according to a report from Santander.

Mexican drinks company FEMSA (FEMSAUBD.MX: ), the largest
public bottler of Coca-Cola products in the world in terms of
sales volume, lost 1.76 percent.

The company reported a 56 percent jump in third-quarter
earnings on Friday, but its CEO said drinks distribution was
hurt by unusually bad weather during the period.
[ID:nN22163543]
(Additional reporting by Jean Luis Arce in Mexico City and
Elzio Barreto in Sao Paulo; Editing by Diane Craft)

EMERGING MARKETS-Latam stocks down as G20 looms, Mexico gains