EMERGING MARKETS-Latam stocks slip after last week’s rally

* Low-volume profit taking follows last week’s big rally

* Peru stocks slump by most since June 2009

* Brazil’s Bovespa down 0.85 pct, Mexico’s IPC 0.04 pct
(Updates to close)

By Michael O’Boyle and Denise Luna

MEXICO CITY/RIO DE JANEIRO, March 28 (Reuters) – Latin
American stocks fell on Monday in low-volume trade as investors
were unwilling to push the market higher given concerns Japan’s
nuclear crisis could continue to weigh on global markets.

The MSCI Latin American stocks index (.MILA00000PUS: Quote, Profile, Research) fell
0.89 percent after having last week notched its biggest weekly
percentage gain since last November.

“Stocks rose too fast, too quickly and people are taking
some profits,” said Rodolfo Navarrete, head of analysis at
brokerage Vector in Mexico City.

Short-term traders were cashing in after last week’s big
rise, but solid U.S. data this week, including the key monthly
payrolls report, could back further gains, analysts said.

Investors were also watching Japan, where plutonium was
found in soil at the crippled Fukushima nuclear complex,
raising some worries about the battle to contain radiation at
the quake-stricken nuclear plant. [ID:nL3E7ES2ND]

“If they can control the situation in Japan, the markets
could keep going up, the macroeconomic data is providing some
support, but the situation in Japan is what will set the tone,”
said Roberto Galvan, a technical analyst at brokerage
Actinver.

Mexico’s IPC index (.MXX: Quote, Profile, Research) eased 0.04 percent to 36,767.86
after after posting its best weekly advance last week since
December 2009. Mexico’s IPC saw its lowest volume in a month on
Monday, according to Reuters data.

Galvan said that Mexico’s IPC stock index would need to
rise beyond 37,000 points on good volume to confirm that stocks
could see further gains.

Before last week’s rally, Mexican stocks had been in a
clear downtrend since falling off a record high at the
beginning of January.

Brazil’s benchmark Bovespa stock index (.BVSP: Quote, Profile, Research) fell 0.85
percent to 67,192.82, dropping back below its 200-day simple
moving average. The index has failed four times to break above
68,000 points since February as it trades sideways.

Shares of mining company Vale (VALE5.SA: Quote, Profile, Research) fell 0.87 percent
on continued uncertainty about the fate of chief executive
Roger Agnelli and who might replace him, as well as worries
about the payments of back royalties the government says Vale
owes.

“All this noise that’s been going on is affecting the
stock, it’s not just Roger (Agnelli), the market already sees
(his departure) as a certainty, but there’s who comes in,
there’s the question of royalties,” said Pedro Galdi, the chief
analyst for SLW Corretora in Sao Paulo.

In Mexico, shares of copper miner Grupo Mexico
(GMEXICOB.MX: Quote, Profile, Research) shed 1.03 percent.

Shares in top retailer Wal-Mart de Mexico (WALMEXV.MX: Quote, Profile, Research)
gained 1.04 percent. The companies chief executive said at the
Reuters Latin American Investment Summit in Mexico City that
the company is looking to trim supply-chain costs.
[ID:nN28200587]

Peru’s stock index (.IGRA: Quote, Profile, Research) closed down 5.16 percent in its
biggest loss since June 2009 after two polls showed nationalist
presidential candidate Ollanta Humala had a narrow lead ahead
of the April 10 election.

Chile’s IPSA index (.IPSA: Quote, Profile, Research) rose 0.11 percent as shares in
industrial conglomerate Copec (COP.SN: Quote, Profile, Research) added 1.1 percent.
Shares in Banco de Chile (CHI.SN: Quote, Profile, Research), the country’s number 2 bank,
fell 2.18 percent.
(Additional reporting by Luciana Lopez; Editing by Andrew
Hay) (([email protected]; Tel:
+5255-5282-7153; Reuters Messaging:
[email protected]))

EMERGING MARKETS-Latam stocks slip after last week’s rally