U.S.-traded shares of companies based in Latin America headed lower on Monday, taking a cue from Wall Street amid cautious remarks from the U.S. Federal Reserve and nervousness over the health of the U.S. economy.
The Bank of New York Mellon Latin America ADR Index lost 6.66 points, or 1.6 percent, to 423.76 as U.S. markets, including the Dow Jones industrial average, fell.
ADRs, or American Depository Receipts, are securities that allow U.S. investors to trade shares of companies based overseas.
Janet Yellen, San Francisco Federal Reserve president, said in a speech that problems with the U.S. housing and banking sectors could worsen before the economy recovers. The comments, along with a downbeat report from analysts on government-backed mortgage companies, helped send Wall Street lower Monday.
Leading the decliners on the Latin American index was Group TMM SAB. The Mexican maritime shipper tumbled 14 cents, or 7.8 percent, to $1.65.
Brazilian airline GOL Linhas Areas Inteligentes SA sank 70 cents, or 7.5 percent, to $8.60 after hitting a four-year low of $8.39 earlier in the session. On Sunday, Goldman Sachs analyst Daniela Bretthauer cut her price target to $9 from $13.80 and widened her second-quarter and full-year loss estimates on the airline, citing its announcement that it took extraordinary costs in the second quarter. Bretthauer maintained her "Sell" rating for the stock.
Brazilian homebuilder Gafisa SA lost $1.52, or 5 percent, to $28.90.
Among the gainers, Mexican wireless communications provider Maxcom Telecomunicaciones SAB de CV rose 39 cents, or 3.4 percent, to $11.88.
Banco de Chile advanced $1.94, or 4.7 percent, to $43.32.
Chilean supermarket chain Distribucion y Servicio SA added 78 cents, or 3.6 percent, to $22.45.
The Bank of New York Mellon Composite ADR Index slipped 2.29 points, or 1.4 percent, to 161.61.
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