EMERGING MARKETS-Argentine equities hit again by sprawling corruption probe
SAO PAULO/BUENOS AIRES, Aug 8 (Reuters) - Argentine equities tumbled for the second straight day on Wednesday as investor concerns grew that a massive corruption probe that began last week could expand and affect more companies.
The wide-ranging investigation has already swept up construction magnates accused of attempting to secure contracts by delivering millions of dollars in bribes to officials in former President Cristina Fernandez's government. Executives at Techint, the parent company of steel company Ternium SA, have also been questioned.
The probe comes on top of a major drought and a recent run on the peso currency that caused the government to hike interest rates and seek financing from the International Monetary Fund. Those events have raised the specter of a GDP contraction in 2018.
"The political certainty is adding onto the list of uncertainties for local investors, who are continuing to put an emphasis on caution," said Gustavo Ber, a partner at Buenos Aires-based consultancy Estudio Ber.
The benchmark Merval index was off 1.07 percent in mid-day trade, after tumbling 3.6 percent on Tuesday.
Across the region, equities markets were mixed, as trade tensions steadily escalated, with China slapping 25 percent tariffs on another $16 billion dollars worth of U.S. goods.
Brazil's Bovespa was up 0.33 percent in mid-day trade, while Mexico's IPC was off 0.16 percent.
Top gainers on the Bovespa included steelmakers Gerdau and Companhia Siderurgica Nacional, whose shares rose to multimonth highs on Wednesday after their quarterly earnings beat forecasts thanks to a jump in metal prices linked to U.S. tariffs.
The two biggest losers were retailers Via Varejo SA , parent company GPA and Magazine Luiza SA , which all fell at least 3 percent after Magazine Luiza denied to newspaper Valor Economico any talks for a potential tie-up with Via Varejo.
Key Latin American stock indexes and currencies at 1509 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1081.31 0.14 -6.79 MSCI LatAm 2729.44 -0.42 -3.09 Brazil Bovespa 80607.99 0.33 5.50 Mexico IPC 49883.35 -0.16 1.07 Argentina MerVal 27484.99 -1.07 -8.58 Colombia IGBC 12067.66 -0.23 6.13 Venezuela IBC 103339.25 0.18 8081.14 Currencies daily % YTD % change change Latest Brazil real 3.7487 0.47 -11.61 Mexico peso 18.4485 0.02 6.78 Chile peso 643.18 -0.12 -4.44 Colombia peso 2905.1 -0.49 2.65 Peru sol 3.268 0.00 -0.95 Argentina peso 27.5000 -0.35 -32.36 (interbank) Argentina peso 27.85 -0.36 -30.95 (parallel) (Reporting by Gram Slattery and Walter Bianchi Editing by Marguerita Choy)
