March 4 (Bloomberg) -- Argentina's Merval stock index fell for a second day on concern the International Monetary Fund may not approve the country's economic and fiscal targets as needed for a new loan disbursement.

The Merval index fell 11.59, or 1 percent, to 1191.84, at 12:12 p.m. New York time. BBVA Banco Frances SA, Argentina's third-biggest bank in deposits, led the decline.

Argentine President Nestor Kirchner said he won't pay a $3 billion payment due to the IMF on March 9 unless he gets a commitment from the international lender that it will approve the country's economic targets and make a disbursement later this month. IMF officials meeting in Washington yesterday failed to send positive signs that the market was expecting that they would approve the targets, said Dionisio Corneille, head of Corneille Sociedad de Bolsa brokerage in Buenos Aires.

``Argentina fulfilled all the economic targets, but the IMF is facing political pressure to demand Argentina to be more flexible with its debt proposal,'' said Corneille, who helps manage about 3 million pesos ($1 million) in Argentine stocks.

Kirchner said the country's offer to resume payments on defaulted debt with new bonds worth $250 per $1,000 of face value, won't be improved.

U.S. Treasury Secretary John Snow yesterday told Argentina to fulfill its pledges to private creditors who hold $99.4 billion in the country's defaulted debt.

Other Markets

In other markets, Mexico's Bolsa rose 78.04, or 0.8 percent, to 10,131.22. Brazil's Bovespa rose 64.86, or 0.3 percent, to 22,615.35. The main indexes in Venezuela and Colombia rose, while the main index in Chile fell. Peru's index was little changed. Morgan Stanley's index of Latin American shares rose 0.2 percent to 1184.70.

The following stocks are making 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.

Argentina

Banco Frances (FRAN AR) fell 16 centavos, or 1.8 percent, to 8.65 pesos, its biggest drop in six days. Grupo Financiero Galicia SA (GGAL AR), Argentina's biggest non-government owned bank, fell 3 centavos, or 1.2 percent, to 2.45 pesos, heading to its lowest price this week. Frances and Galicia are among the national banks that Argentina plans to hire to advise the government in debt renegotiations.

Brazil

Preferred shares of AmBev (AMBV4 BS) fell 25.99 reais, or 4 percent, to 622 reais, on top of a 15 percent plunge yesterday. Belgium's Interbrew SA said it plans to buy control of AmBev, as the Brazilian brewer is known. AmBev said it plans to issue 9.5 billion common shares and 13.8 billion preferred ones to get Interbrew's North American unit Labatt.

Carlos Laboy, analyst with at Bear Stearns & Co., lowered his rating on AmBev to ``underperform'' from ``outperform,'' meaning he believes the shares will lag those of similar companies he covers over the next 12 months.

``We do not like the change of control in AmBev, the structure of the deal, the assets that AmBev is getting, or the implied valuation,'' the analyst wrote in a report.

AmBev's common shares (AMBV3 BS) rose 20.01 reais, or 2.1 percent, to 960 reais, extending its gain since Feb. 25 to 45 percent. Interbrew will pay holders of common shares 80 percent of the price offered for AmBev's controlling stake.

Preferred shares of Tele Norte Leste Participacoes SA (TNLP4 BS), or Telemar, the country's largest phone company, fell 45 centavos, or 1 percent, to 42.75 reais. The common shares jumped 2.70 reais, or 7.5 percent, to 38.90 reais.

``AmBev's case, which was positive to common shareholders and negative to preferred shareholders, was an alert for investors to pay more attention on common shares,'' said Jacopo Valentino, who helps manage 500 million reais in emerging market stocks at BNP Asset Management. ``The spread between Telemar's common and preferred shares is narrowing.''

Usinas Siderurgicas de Minas Gerais SA (USIM5 BS), Brazil's biggest steelmaker for the auto industry, rose for a fifth day, gaining 1.34 real, or 3.6 percent, to 38.15 reais. The company is scheduled to report fourth-quarter earnings after the market closes. In the year, the stock has risen 12 percent, after a more- than-fivefold gain last year.

Mexico

America Movil SA (AMXL MM), Latin America's biggest mobile telephone company, rose 30 centavos, or 1.5 percent, to 20.32 pesos. The shares have gained 31 percent this year. ``I still like the stock,'' said Gerardo Lozoya who helps manage $450 million in stocks and bonds with Investra Consultores SA in Monterrey, in an interview.

Corporacion Geo SA (GEOB MM), Mexico's largest home builder, rose 73 centavos, or 0.9 percent, to 78 pesos. Geo's shares have benefited from government programs to encourage home construction in Mexico. ``The expansion will continue as the housing programs still give results,'' Lozoya said. ``I think the gain is done, though. The stock price went from about 16 pesos to about 77 pesos in the last two years, I don't think it will go to 150 pesos.''

Empresas ICA Sociedad Controladora SA (ICA* MM), Mexico's largest construction company, gained 6 centavos, or 1.7 percent, to 3.59 pesos. Investors such as Lozoya expect the company to benefit from government programs to improve roads and build energy projects.

Colombia

Bancolombia SA (BCOLO CB), the largest bank, rose 150 pesos, or 3.2 percent, to 4,900 pesos. The bank's consolidated fourth- quarter net income increased to 146.3 billion pesos ($51 million) from 90.9 billion pesos a year earlier.

Valores Bavaria SA (VALBAVA CB), Colombia's largest diversified holding group, rose 59 pesos, or 22.6 percent, to 320. The company on Monday reported its fourth-quarter loss narrowed to 37 billion pesos from 306 billion pesos a year earlier. Carlos Andres Daza, a trader at Profesionales de Bolsa SA in Medellin, said investors were betting the share would recover to the 350-level it reached in early February. Valores, half owner of the airline Avianca, has been recovering from a low of 99 pesos per share reached in August 2002.

Chile

Distribucion y Servicio SA (DYS CC), Chile's biggest supermarket chain, fell 25 pesos, or 3.2 percent, to 755 pesos. The retailer, which will report fourth-quarter earnings this month, has reduced prices to compete with chains such as Cencosud SA.

Telefonica CTC Chile (CTCA CC), Chile's biggest telephone company, fell 69.9 pesos, or 2.9 percent, to 2,320 pesos. The company has had losses in three of the past five years after the government reduced the former state-run monopoly's fees for local calls. The government will set the company's rates in May.

To contact the reporters on this story: Eliana Raszewski at eraszewski@bloomberg.net or Telma Marotto in Sao Paulo at (55) tmarotto1@bloomberg.net

Last Updated: March 4, 2004 13:05 EST