NEW YORK, NY / ACCESSWIRE / June 8, 2018 / It was a brutal day for Latin American stocks on Thursday after Brazil's Bovespa index fell as much as 6%. Shares of both MercadoLibre and PagSeguro both tumbled.
RDI Initiates Coverage on:
PagSeguro Digital Ltd.
MercadoLibre, Inc. shares closed down 8.30% on Thursday with almost 1.5 million shares traded. There was no news from the company, which offers the MercadoLibre Marketplace, an automated online commerce service for businesses and individuals to list items and conduct their sales and purchases online in a fixed-price or auction-based format in Latin America. It was the fact that Brazil's Bovespa index continued to fall. Since February the index has fallen roughly 15%. Yesterday the index fell as much as 6% at one point. According to Alejo Czeronko, a strategist with UBS Wealth Management, "I think it's a reflection of some of the changes in the Brazilian outlook that have taken place in the last two to three weeks. A combination of less benign domestic political and social dynamics, together with a less benign outlook for economic activity, all in the context of the less friendly external environment."
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PagSeguro Digital Ltd. shares closed down 10.37% on Thursday on slightly over 8 million shares traded. There was no news from the provider of financial technology solutions focused primarily on micro-merchants, small companies and medium-sized companies in Brazil. Traders may have been reacting to the fact that Brazil's Bovespa index had fallen as much as 6% at one point. It was at the end of last month that the company reported first quarter results. For the quarter PagSeguro reported R$14.4 billion in total payment volume (TPV). This was an increase of 138.7% from the year ago period. The company said that active merchants in the last 12 months at close of period was 3.1 million. This was an increase of 83.3% compared with 1Q17, with growth of 1.4 million net new merchants. Non-GAAP total net revenue was up 89.2% compared to a year ago and Non-GAAP net income, up 255.5% compared with 1Q17.
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