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EMERGING MARKETS-Latam stocks mixed ahead of Carnival holiday

Published 03/04/2011, 11:08 AM
Updated 03/04/2011, 11:12 AM

* Chilean weekly MACD suggests bearish streak waning

* Carnival to close Brazil markets Monday, Tuesday

* Brazil's Bovespa down 0.6 pct, Mexico IPC dips 0.71 pct

By Luciana Lopez

SAO PAULO, March 4 (Reuters) - Trading was mixed on regional bourses in Latin America early on Friday, as impending Carnival closures pressured Brazilian equities even as Chilean stocks extended a rebound.

The MSCI Latin American stocks index <.MILA00000PUS> rose 0.06 percent after climbing in the previous session to levels last seen in late January.

While U.S. employers hired more workers in February than in any month since May last year and the unemployment rate fell to a near two-year low, markets had already priced the data in, said Alessandra Ribeiro, an economist with Tendencias consultancy in Sao Paulo. For more, see: [ID:nOAT004757]

"There's likely some profit-taking today," Ribeiro said.

Because markets in Brazil will be closed Monday, Tuesday and part of Wednesday, she said, "people don't want to take on a lot of risk ... There could be a downward bias today."

Brazil's benchmark Bovespa stock index <.BVSP> fell 0.6 percent after a two-session streak of gains that took the index to its highest close since late January.

Shares of state-controlled energy company Petrobras slipped 0.41 percent. The stock has recently traded near August highs on fears that a revolt in Libya will disrupt global petroleum supplies.

Mining company Vale , the world's largest producer of iron ore, fell 1.33 percent, nearly erasing all its gains from the past two sessions.

Among stocks posting the biggest drops in Sao Paulo, telecom Oi's operational holding company Tele Norte Leste Participacoes shed 1.48 percent and operating unit Telemar dropped 1.81 percent as profits missed estimates. [ID:nN04146952]

Chile's IPSA index <.IPSA> rose 0.5 percent as the weekly MACD trend indicator signaled an extended bearish trend could be waning on Friday. The indicator had already turned bullish based on daily changes.

MACD, or moving average convergence divergence, is used in technical analysis as an indicator of short-term momentum.

Chilean fertilizer maker SQM rose 0.93 percent, adding to its biggest one-day jump since August in the previous session. Privately held investment bank Chardan raised the company's American Depositary Receipts to buy on Thursday.

Mexico's IPC index <.MXX> fell 0.71 percent, despite early time in positive territory.

Shares of America Movil , one of the world's largest telecommunications company, were down 0.82 percent. (Editing by Dan Grebler)

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