EMERGING MARKETS- Latam stocks slip, OGX jump helps Brazil

Mon May 6, 2013 7:20pm EDT

Related Topics

* China services PMI slips, euro zone composite PMI weak
    * Hypermarcas shares jump on Q1 earnings
    * Brazil Bovespa falls 0.1 pct, Mexico IPC down 0.95 pct


    By Asher Levine
    SAO PAULO, May 6 (Reuters) - Weak economic data from the
euro zone and China weighed on Latin American stocks on Monday,
but sharp gains in Brazilian oil company OGX helped limit losses
in Brazil.
    Shares fell after purchasing managers index data showed the
euro zone economy continued to struggle in April, while activity
in China's services sector grew at the slowest pace since August
2011. 
    China is Brazil's biggest trading partner and a key
purchaser of Latin American commodities such as iron-ore, soy,
copper and petroleum. 
    The European Union, of which the euro zone is a part,
purchases about 20 percent of Brazil's exports, almost double
the value of Brazilian goods imported by the United States.
    "We're still very linked to Europe and Asia and are
suffering alongside them while the U.S. is doing well," said
Carlos Nielebock, a trader with ICAP Corretora in Sao Paulo.
"The sentiment among some players is to buy the U.S. and sell
emerging markets like Brazil, who are more reliant on
commodities."
    Brazil's benchmark Bovespa stock index fell as much
as 1.5 percent early in the session, but pared losses to close
down 0.1 percent at 55,429.88 points.
    The shares of OGX Petroleo e Gas Participacoes SA
, the oil company controlled by Brazilian billionaire
Eike Batista, rose 7.65 percent after Dow Jones Newswires
reported that OGX sold a stake in its Tubaroa Martelo oil field
for around $850 million to Malaysian state oil company Petronas.
    OGX stock has collapsed about 90 percent since early last
year amid concerns it could face a cash crunch as it struggles
to get new projects up and running.
     "OGX clearly needs cash and a possible sale would be
positive in that sense," said analyst Felipe Rocha at brokerage
Omar Camargo.
    The shares of drugmaker Hypermarcas rose 4.4
percent after the company reported late on Friday that
first-quarter profit more than doubled from a year earlier,
beating analysts' forecasts. 
    Offsetting gains, PDG Realty SA fell 4.8 percent
and rival Gafisa SA lost 3.71 percent after 
newspaper O Estado de S. Paulo reported on Sunday that new home
prices in Sao Paulo, Brazil's largest city, fell in the first
quarter for the first time in four years. 
    Mexico's IPC index shed 0.95 percent to 42,197.99
points, giving up much of its sharp gains from Friday after
strong monthly employment data in the United States, Mexico's
top trading partner.
    Top retailer Wal-Mart de Mexico shed 2.27
percent. After the market close, Walmex said that sales at
Mexican stores open at least a year fell 3.6 percent in April
compared with the same month a year earlier. 
    Chile's IPSA index slipped 0.3 percent to 4,328.78
points as retailer Falabella lost 1.15 percent.
       
    Latin America's key stock indexes at 1509 GMT:
 Stock indexes                            daily %    YTD %
                               Latest      change   change
 MSCI LatAm                     3,747.00    -0.47    -1.34
                                                   
 Brazil Bovespa                55,429.88     -0.1    -9.06
                                                   
 Mexico IPC                    42,197.99    -0.95    -3.45
                                                   
 Chile IPSA                     4,328.78     -0.3     0.64
                                                   
 Chile IGPA                    21,178.91    -0.54     0.52
                                                   
 Argentina MerVal               3,948.40     1.55    38.33
                                                   
 Colombia IGBC                 13,412.34    -0.58    -8.86
                                                   
 Peru IGRA                     17,706.34     0.31   -14.17
                                                   
 Venezuela IBC                681,531.81     0.55    44.56
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