* Brazil Bovespa gains 0.63 pct, Mexico IPC up 0.14 pct
SAO PAULO, Nov 22 (Reuters) - Brazilian stocks rose on
Friday after two days of losses, though bank shares extended a
recent drop as investors remained cautious on the outlook for
the financial sector.
Mexico's IPC index rose for a third straight day,
while Chile's bourse was little changed.
Brazil's benchmark Bovespa stock index rose 0.63
percent to 53,019.79, though remained on course to post a weekly
loss of nearly 1 percent.
State-run oil company Petroleo Brasileiro SA,
known as Petrobras, rose 1 percent, nearly erasing the previous
day's losses, while homebuilder Gafisa SA climbed 4.2
Banking shares continued to drag on the index for a third
straight day on investor concern over an impending Supreme Court
ruling in a long-standing lawsuit involving Brazil's biggest
The lenders have been accused of failing to remunerate
account holders properly during the inflation-fighting monetary
plans implemented during the late 1980s and early 1990s. The
sector could be forced to pay as much as 150 billion reais
($65.6 billion) in compensation.
"Given the huge impact such litigation could have on the
financial system and on the economy, we think it is unlikely
that the banks will lose the cause in court," Credit Suisse
Securities analysts led by Marcelo Telles wrote on Friday.
Shares of state-run Banco do Brasil SA fell 2.5
percent while private-sector competitor Itaú Unibanco Holding SA
dropped 0.8 percent.
Mexico's IPC index edged higher, rising 0.14 percent
to 41,055.68 as a 0.3 percent gain in shares of
telecommunications firm America Movil offset a 0.3
percent drop in lender Grupo Financiero Banorte.
Chile's IPSA index was little changed from
Thursday's close. Retailer Cencosud advanced 0.8
percent while rival Falabella dropped 1.1 percent.
Latin America's key stock indexes at 1521 GMT:
Stock indexes Latest daily % YTD %
MSCI LatAm 3,316.80 0.99 -13.52
Brazil Bovespa 53,019.79 0.63 -13.01
Mexico IPC 41,055.68 0.14 -6.06
Chile IPSA 3,715.42 0.01 -13.62
Chile IGPA 18,365.27 0.01 -12.84
Argentina MerVal 5,491.51 1.78 92.39
Colombia IGBC 13,377.28 0.03 -9.10
Peru IGRA 15,126.98 0.02 -26.67
Venezuela IBC 2,334,232 5.1 395.13