EMERGING MARKETS-Oil producers drive Brazil stock index lower

* Petrobras due to report results after market close
* OGX January production numbers disappoint
* Brazil Bovespa falls 1.29 pct, Mexico bourse closed

By Asher Levine
SAO PAULO, Feb 4 (Reuters) - Brazilian stocks slipped on
Monday with shares of heavily weighted oil producers Petrobras
and OGX falling on concerns over profit and production.
Chile's bourse also dropped, for the first session
in four, while Mexico's stock market was closed for a
holiday.
Brazil's benchmark Bovespa stock index fell for the
first session in three, losing 1.29 percent to 59,574.15.
Shares of state-controlled oil company Petroleo Brasileiro
SA, known as Petrobras, fell 1.84 percent,
contributing most to the index's losses.
Petrobras is expected to release its fourth-quarter earnings
results after the market closes on Monday. Analysts said rising
sales and profit will be insufficient to fix growing cash-flow
and debt problems brought on by soaring costs, rising imports
and fuel subsidies.
Shares of rival oil firm OGX Petroleo e Gas Participacoes SA
, controlled by Brazilian billionaire Eike Batista,
fell 2.65 percent after the company reported output that fell
short of expectations in January.
"The market is worried about the Petrobras results and
concerns about mismanagement of the company are hurting the
shares," said Pedro Galdi, chief strategist at SLW brokerage in
Sao Paulo. "With OGX the concern is more that the company is not
going to deliver on its promises."
Shares of sanitation utility Cia de Saneamento Basico do
Estado de S. Paulo SA, known as Sabesp, rose 1.5
percent after Bank of America Merrill Lynch analysts on Monday
reiterated that the shares are their top pick for utilities in
Latin America.
Brazil's Bovespa is down over 2 percent this year, while
Mexico's IPC index is up nearly 5 percent and Chile's IPSA index
is up nearly 6 percent.
"We used to be the investors' darling but now they are
turning to other Latin American countries with stronger
economies and better economic outlooks," said Debora Morsch, a
partner with Zenith Asset Management in Porto Alegre, Brazil.
"Here you have a negative situation, with inflation high and
economic growth weak," Morsch said, adding that fears over
government intervention in the private sector have left many
foreign investors less confident in Brazil's market.
Chile's IPSA index posted its biggest daily drop in
over a week, losing 0.26 percent to 4,554.20.
Shares of retailer Falabella fell more than 1
percent, contributing most to the index's losses, while Banco
Santander Chile slid 1.46 percent.

Latin America's key stock indexes at 1407 GMT:

Stock indexes daily % YTD %
Latest change change
MSCI LatAm 3,936.62 -1.09 4.79

Brazil Bovespa 59,574.15 -1.29 -2.26

Mexico IPC 45,768.49 1.08 4.72

Chile IPSA 4,554.20 -0.26 5.88

Chile IGPA 22,170.65 -0.22 5.22

Argentina MerVal 3,537.06 0.15 23.92

Colombia IGBC 0.00 -100.00 -100.00

Peru IGRA 21,777.78 -0.1 5.57

Venezuela IBC 494,130.13 0 4.81