June 23 (<a href=quote.bloomberg.com>Bloomberg) -- Mexico's benchmark stock index is heading toward its largest one-day drop in a month, following equity markets in the U.S., the buyer of almost 90 percent of the Latin American country's exports. Telefonos de Mexico SA, the country's biggest phone company, led declines.

The Mexico City-based Bolsa index fell 77.59, or 1.1 percent, to 7003.10 by 1:43 p.m. New York time, its fourth day of declines. Brazil's Bovespa index of the most-traded stocks on the Sao Paulo stock exchange fell 1.3 percent to 12,966.94, a fourth day of decline.

``Telmex is linked to the U.S. markets,'' said Gerardo Lozoya who manages $80 million in Latin America stocks for Investra Consultores in Monterrey, Mexico.

The Standard & Poor's 500 Index fell 15.58, or 1.6 percent, to 980.12, the third drop in four days. The Dow Jones Industrial Average declined 1.5 percent to 9064.92 and the Nasdaq Composite Index shed 2.1 percent, to 1609.73.

In other markets, stocks in Argentina, Chile and Peru fell, while in Venezuela they rose. Markets in Colombia are closed for the Corpus Christi holiday.

The following stocks are having significant gains or losses in Latin American markets today. Symbols are in parentheses after the company name. In Brazil the preferred share is usually the company's most-traded class of stock.

Mexico

Telmex (TELMEXL MM) fell 42 centavos, or 2.5 percent, to 16.47 pesos, its lowest level in two weeks.

Cemex SA (CEMEXCP MM), the world's third-largest cement maker, fell 88 centavos, or 1.9 percent, to 46.21 pesos. The company said last week its global sales in the second quarter likely rose 6.3 percent compared with the same period of last year though sales in the U.S. fell.

Grupo Iusacell SA (CELV MM), Mexico's third-largest cellular phone provider, surged 8 centavos, or 30 percent, to 36 centavos. The stock has more than doubled in the last four days. Analysts say some minority shareholders expect Ricardo Salinas Pliego, who bought the controlling stake in Iusacell held by Verizon Communications Inc. and Vodafone Group Plc, may negotiate a reduction on the company's $800 million debt. ``Isuacell's stock is 100 percent speculative,'' said Lozoya.

Grupo Mexico SA (GMEXICOB MM), the world's third biggest copper producer, fell 25 centavos, or 1.6 percent, to 15.15 pesos as the price of copper for three-month delivery fell $15, or 0.9 percent, to $1,690 a metric ton on the London Metal Exchange. The price of copper lost 1.7 percent in the last three days.

Grupo Modelo SA (GMODELOC MM), Mexico's largest beer maker, fell 9 centavos, or 0.4 percent, to 24.01 pesos. Reforma newspaper reported the company plans to build a $1.5 billion plant in western Colima state, and to spend $350 million to boost capacity at two existing plants.

Brazil

Eletropaulo Metropolitana SA (ELPL4 BS), Latin America's largest power distributor, fell 62 centavos, or 2.3 percent, to 26.19 reais. Gustavo Gattass, an analyst with UBS Warburg SA, cut his recommendation on the shares to reduce'' from buy'' and lowered his target price for the stock to 30 reais from 45 reais.

Empresa Brasileira de Aeronautica SA (EMBR4 BS), the world's fourth-largest aircraft maker, fell 29 centavos, or 2.1 percent, to 13.61 reais, on reports that one of its clients, Swiss International Air Lines Ltd., may cut 28 percent of its intercontinental fleet as part of a plan to reduce costs.

Petroleo Brasileiro SA (PETR4 BS), the state-controlled oil company known as Petrobras, fell 85 centavos, or 1.7 percent, to 50.25 reais. The Rio de Janeiro-based company said it agreed to pay $59 million of Houston-based Halliburton Co.'s claims over delays in building offshore oil production platforms. Halliburton, the world's second-largest oilfield-services company, said last week second-quarter profit will plunge because of the delays, and that it's seeking $375 million in claims from Petrobras.

Tele Norte Leste Participacoes SA (TNLP4 BS), the country's largest telephone company, fell 53 centavos, or 1.6 percent, to 33.62 reais. The telecommunications regulator is to release this week rate increases for fixed-line phone calls.

Argentina

Grupo Financiero Galicia SA (GGAL AR), the country's second- largest banking group, fell 5 centavos, or 3.7 percent, to 1.29 pesos. Galicia fell after reaching last week its highest price since July 2001. ``This drop is a normal reaction after a big gain,'' said Santiago Caronni, a trader at Puente Hermanos Sociedad de Bolsa in Buenos Aires.

Solvay Indupa SAIC (INDU AR), a company that produces PVC, rose 15 centavos, or 6.9 percent, to 2.32 pesos, the biggest gain in five weeks. ``Solvay is related to the construction industry, which rose 36.3 percent in the first quarter from the same period last year,'' said Caronni.

Telecom Argentina Stet-France Telecom SA (TECO2 AR) fell 25 centavos, or 5.9 percent, to 4 pesos after gaining 4.2 percent on Friday.

Peru

Cia. de Minas Buenaventura SA (CMB/C PE), Peru's biggest gold and silver miner, fell 7 centimos, or 1.3 percent, to 52 soles. Shares fell as the price of gold for three-month delivery dropped 1.3 percent to $352.10 an ounce on the Comex division of the New York Mercantile Exchange.

Credicorp Ltd. (BAP PE), Peru's biggest financial holding company, rose 11 cents, or 1.1 percent, to $9.91, gaining for a second day. Credicorp owns Peru's biggest bank Banco de Credito del Peru SA.

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Monday, June 23, 2003 By: VHeadline.com Reporters

Venezuela Today's Washington D.C. Bureau reports that the Venezuelan government has officially announced a target of $44 million in daily foreign disbursement by the end of June. The target announcement comes on the heels of recent comments by Ford Motors that it may have to take the drastic step of shutting down its Venezuelan production for one week in August because of a failure to receive enough foreign currency for payments to suppliers.

Sources in the government say the exchange commission is currently issuing $26.4 million per day for foreign currency transactions and that Ford has already received $36.5 million in 75 separate applications. 

Ford had to halt production June 2-6 due to having receiving far less than its requested amount of disbursements, but government officials stress that the situation is "in the process of being corrected" with the anticipation of an end to any problems relating to foreign disbursements in the near future.

EL UNIVERSAL

Events in April 2002 rang alarm bells in Venezuela about the convenience of leaving politics in the hands of professional politicians. The dramatic mistakes made during those days were blamed on the inexperience of officials who believed they were entitled to make wrong moves and decisions on behalf a mass they did not represent.

Consequently, Venezuelans turned their eyes to politicians, belonging to both new and old parties, hoping they would embody the ideas of the people -the common citizens-, who faced an unprecedented deep social and economic crisis and needed a leadership capable of finding a solution to such a chaotic situation. Ever since then, politicians in Venezuela have progressively led the people through the new phase that came after April 2002 and that ended up with the signature of a controversial agreement by the government and the opposition. Nothing is ever final, as evidenced by an accord that purported to put an end to a cycle, but whose text is far from representing an ultimate proposal to pave the way for an electoral solution. Once again, political expertise is to be tested, as politicians will have to try to fulfill the expectations of the majority. While "some shortcuts lengthen," as the Canadian separatist poet Gilles Vigneault says, and as Venezuelans learnt during that awful month of April, that is no excuse for the leaders not to act inspired by the historical responsibility they have in this unfortunate time. Therefore, the current work of politicians must be thoroughly considered.

A recall referendum to terminate the mandate of President Hugo Chávez will only be possible if opposition leaders show a real sense of unity and focus -beyond speeches- on such goal. It is distressing to see that, while Venezuela is breaking into pieces, some political leaders and parties are still betting on individualist projects, even though it is apparent that no leader alone will be capable to put an end to this nightmare.

It is necessary to understand that despite the inexperience of apolitical leadership, pure politics -in its traditional way- cannot be the only answer to the new totalitarianism facing Venezuela. More creativity and diversity is needed to face this danger without the guilty feelings that have prevented adequate actions from being adopted. In addition, contrary to what has been said so far, perhaps the citizen's efforts have not been enough and perhaps the society's supposed sacrifice and learning have been overrated. It is vital to have a bigger political expertise!

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Monday, June 23, 2003 By: VHeadline.com Reporters

Venezuela Today's Washington D.C. Bureau reports that Venezuelan lawyers have laid out their full case against Science Applications International Corporation (SAIC) with the government side claiming that SAIC has been involved in "a pattern of half truths and lying in regards to the actions of state oil company Petroleos de Venezuela (PDVSA) as they relate to a now defunct Intesa/SAIC joint venture.  San Diego (California) SAIC is reportedly heading into bankruptcy.

According to lawyers the ending of the contract with SAIC was "a simple business decision ... the work could be done for less" with another company, and the relationship was terminated. Furthermore, the Venezuelan government adds that, in June last year, SAIC had been made fully aware of the decision to end the relationship in order to allow SAIC plenty of time to cease its activities in Venezuela. The lawyers also disputed a SAIC claim that its workers had been locked out of their facilities in Venezuela, unable to claim their personal possessions.

These dispute comes on the heels of another debacle between the Venezuelan government and Canada-based Enbridge Inc. where the government says Enbridge walked out of an agreement which was canceled in clear default.

The Chavez Frias government is adamant that it needs to encourage foreign investment and continues to strive towards maximizing foreign investment while working to use economic investment to help the less fortunate in Venezuelan society. The nation's economy is still recovering from a crippling national stoppage orchestrated by anti-government business and labor sectors ... the stoppage hurt Venezuela to the tune of $4.7 billion and has economic growth back dramatically.

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Monday, June 23, 2003 By: Patrick J. O'Donoghue

Venezuela's senior baseball commentator and columnist, Juan Vene, who lives in the USA,  has been attempting some damage repair to help major league baseball player, Miguel Cairo quoted as saying that he is afraid to return to Venezuela because of public insecurity. 

Cairo had told Vene that  he would be prepared to play for the Cardenales de Lara in Venezuela's winter league for less money but put his big foot in a quagmire commenting that if anyone says anything against the Venezuelan President, s/he runs the risk of being kidnapped and murdered ... "afterwards they'll say it was a crime of passion ... The President is the only one who rules in Venezuela ... insecurity will be  problem for all baseball players." 

Vene's piece obviously caused a downpour of angry emails and Cairo says his family in Anaco (Monagas) is very worried as a result ... "a friend in Barquisimeto asked me whether I didn't want to come back to Venezuela." 

The first thing Vene clarifies is that the Venezuelan government has prohibited no one from entering Venezuela ... " people talk and exaggerate because there is freedom and democracy inVenezuela." 

Retracting on his political gaffe, Cairo says he doesn't like party politics and just wants to play baseball in Venezuela. 

Vene supports Cairo, saying that " we are all responsible for the horrible situation that has gripped Venezuela ... we have to respect each other ... the ideal is that I, for example, am interested in the Chavist process and support it ... my wife is completely against it, while her brother is open to talk and discussion ... that's what will make Venezuela great ... what ruins things is the uncivilized way of discussing things head on or with guns." 

The respected baseball expert and father figure forecasts that Cairo will play in Venezuela this winter and his action will encourage other players  to lower their economic aspirations to get the winter league back on its feet again.