Shares of U.S.-traded banks based in Latin America fell sharply on Tuesday after two reports offered a bleak picture of the U.S. housing market and a Deutsche Bank analyst downgraded shares of Brazil's largest private-sector bank.
On Tuesday, the research firm RealtyTrac Inc. said the number of U.S. homes heading toward foreclosure more than doubled in the first quarter from last year.
The number of homes receiving at least one foreclosure-related filing in the first three months of the year was 649,917, up from 306,772 in the year-ago period, the firm said.
In a separate report, an index of U.S. home prices indicated they fell 12.7 percent in February. It was the most rapid decline in the history of the Standard & Poor's/Case Shiller home price index, which tracks home prices in 20 U.S. cities.
And in a note to investors, Deutsche Bank analyst Mario Pierry downgraded shares of Banco Bradesco SA, a day after Brazil's No. 1 private-sector bank said its first-quarter earnings grew 24 percent to 34 cents per ADR, but missed Wall Street estimates by a nickel.
Pierry lowered Bradesco to "Hold" from "Buy." He said the company's earnings were driven largely by one-time gains, adding the stock was overvalued compared to the broader Latin American banking sector.
ADRs of Bradesco lost 85 cents, or 3.9 percent, to close at $21. ADRs, or American Depositary Receipts, are securities that allow foreign companies to trade on U.S. markets.
Other Latin American banks ended lower Tuesday. Argentina's BBVA Banco Frances fell 24 cents, or 3.8 percent, to $6.11.
Brazil's Uniao de Bancos Brasileiros shed $5.07, or 3.8 percent, to $130.13.
Chile's Banco Santander SA was off 88 cents at $52.44.
Argentina's Grupo Financiero Galicia SA gave up 24 cents, or 3.8 percent, to $6.10.
The broader ADR index also ended lower. The Bank of New York Latin America ADR Index fell 14.63 points, or 3.2 percent, to 438.82.
And the Bank of New York ADR Composite Index lost 1.55 points to 180.24.
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