Latam Consumer Monthly:Sector holding eerily steady,in light of looming political risks(October 2016)

Sector was relatively stable in September...

    Latam consumer stocks moved mostly sideways in September: all subsectorsdeclined by 0.4% to 1.4% in USD terms. Only 48% of our covered stocksshowed positive returns (vs. 52% the prior month), although 61% outperformedtheir respective indices (vs. 39% in August). The only double-digit outperformerwas MGLU3, and AMAR3was the only big underperformer. Year to date, only35% of our covered stocks have outperformed: with retailers overall over 23%ahead of their index on average and HPC, Beverages and Food all trailing (thelatter by 39%).