EMERGING MARKETS-Brazil stock index falls as volatile OGX tumbles
* OGX sells stake in oil blocks to Petronas * Brazil Bovespa falls 0.83 pct; Mexico IPC down 0.72 pct By Asher Levine SAO PAULO, May 8 (Reuters) - Brazilian and Mexican stocks fell on Wednesday as shares of Brazilian oil producer OGX were down sharply after its announcement with Malaysia's Petronas failed to calm investor concerns. Stocks rose early in the session as encouraging trade data from China, Brazil's biggest trading partner and a key purchaser of Latin American raw materials, boosted commodities exporters. The Bovespa reversed gains in the afternoon, however, closing down 0.83 percent at 55,804.80 points. Mexico's IPC dropped 0.72 percent to 42,102.14 points. "The turnaround today is basically the same thing we've been seeing for a while, which is the lack of long-term strength in the local market," said Pedro Galdi, an analyst with SLW Corretora in Sao Paulo. He also cited profit-taking following recent gains in the Bovespa. The shares of OGX Petroleo e Gas Participacoes SA , controlled by Brazilian billionaire Eike Batista, rose sharply after Malaysian state oil company Petronas agreed to pay $850 million for a stake in two of its offshore blocks. But the shares ended the day down 9.74 percent, with traders expressing concerns that, despite the short-term relief, the deal did little to improve the company's long-term outlook. OGX shares have plunged nearly 60 percent this year on concerns over missed production targets and dwindling funds. In Mexico, shares of bottling group Femsa fell 2.01 percent, contributing most to the index's decline, while retailer Wal-Mart de Mexico slipped 1.93 percent. A few minutes before the Mexican market closed, Fitch upgraded Mexico's sovereign foreign currency credit rating by one notch to BBB-plus, praising the country's economic fundamentals and the new government's reform program. Chile's IPSA index rose for the fifth session in six, adding 0.35 percent to 4,356.17, as shares of retailer Cencosud advanced 1.48 percent. Latin America's key stock indexes at 2142 GMT: Stock indexes % change Latest MSCI LatAm 3,797.59 0.01 Brazil Bovespa 55,804.80 -0.83 Mexico IPC 42,102.14 -0.72 Chile IPSA 4,356.17 0.35 Chile IGPA 21,290.91 0.32 Argentina MerVal 4,038.23 -0.69 Colombia IGBC 13,270.41 -0.80 Peru IGRA 17,575.32 0.96 Venezuela IBC 682,645.44 0.16
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