Shares of Latin American banks traded on U.S. markets fell sharply on Monday after U.S. bank Wachovia Corp. swung to a first-quarter loss that fell far short of Wall Street expectations.
Before the market opened, Wachovia said it lost $393 million in the first quarter, or 20 cents per share, down from a first-quarter profit of 2.3 billion, or $1.20 a share, a year earlier. Analysts, on average, expected a profit of 40 cents per share, according to a poll by Thomson Financial.
The results sent the broader markets marginally lower. The Bank of New York Composite ADR index lost 0.10 points to 172.88.
However, the Bank of New York Latin American ADR index gained 4.32 points to 440.84, pushed higher by Petroleo Brasileiro SA, the index's biggest gainer. ADRs, or American Depository Receipts, represent shares of foreign companies traded on U.S. markets.
The Brazilian oil company surged $9.33, or 8.3 percent, to $122.18 after the Brazilian company discovered an offshore oil deposit, possibly the third-largest in the world.
ADRs of Latin American banks nevertheless fell. Uniao de Bancos Brasileiros SA, based in Sao Paulo, lost $2.19, or 2 percent, to $122.14. Brazilian bank Banco Bradesco SA shed 48 cents, to $29.54. Banco Santander-Chile lost 96 cents, or 2 percent, to $51.80.
Argentine bank BBVA Banco Frances SA fell 12 cents to $6.83. Banco Itau Holding Financeira SA slipped 15 cents to $23.73.
Bancolombia SA, based in Medellin, lost 16 cents to $37.58.
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