* Brazil Bovespa down 0.92 pct, Mexico IPC flat
SAO PAULO, Nov 25 (Reuters) - Brazilian stocks dropped for
the third session in four on Monday as investors, eyeing a
deteriorating fiscal outlook and higher interest rates in Latin
America's largest economy, remained bearish on local shares.
Mexico's IPC index and Chile's bourse were
both little changed.
Brazil's benchmark Bovespa stock index fell 0.92
percent to 52,316.16, adding to a more-than 14 percent drop for
the year. The Bovespa looks set to post its first monthly loss
in five in November, having dropped 3.5 percent since the
government announced a far worse-than-expected September budget
deficit on Oct. 31.
"We're not tracking the gains in markets abroad because
things here are looking quite complicated, with the outlook for
a worsening fiscal situation and higher interest rates," said
Alvaro Bandeira, a partner with Orama Investimentos in Rio de
All but two of 62 economists polled by Reuters expect
Brazilian policymakers to raise the benchmark Selic rate
by 50 basis points to 10 percent on Wednesday, its
highest since March 2012.
Itaú Unibanco Holding SA, Brazil's largest
non-government bank, fell 2.9 percent, contributing most to the
index's losses, while mining firm Vale SA lost 1.2
Shares of airline Gol Linhas Aereas SA jumped 3
percent after the company said that a measure of ticket prices
known as yield rose 14 percent in October from a year earlier
while executives forecast a stable outlook for domestic flights
Mexico's IPC index was little changed from Friday's
close, with a 0.7 percent rise in shares of telecommunications
firm America Movil offsetting a 0.7 percent fall in
retail giant Wal-Mart de Mexico.
Chile's IPSA index was also near unchanged, with
shares of Latam Airlines rising 1.5 percent and
regional energy group Endesa Chile down 0.9 percent.
Latin America's key stock indexes at 1537 GMT:
Stock indexes daily % YTD %
Latest change change
MSCI LatAm 3,294.79 -0.5 -12.81
Brazil Bovespa 52,316.16 -0.92 -14.17
Mexico IPC 41,219.26 0.05 -5.69
Chile IPSA 3,738.36 0.08 -13.09
Chile IGPA 18,437.99 0.07 -12.49
Argentina MerVal 5,529.54 2.49 93.73
Colombia IGBC 13,338.16 -0.09 -9.36
Peru IGRA 15,108.81 0.08 -26.76
Venezuela IBC 2,455,587.9 3.82 420.87