EMERGING MARKETS-Brazil's Bovespa rises led by OGX, steelmakers; Mexico falls

Mon Jul 15, 2013 10:44am EDT

Related Topics

* OGX gains on refinancing hopes, leading Bovespa up 1.5 pct
    * Mexico falls for fourth day in six as Homex leads declines

    By Guillermo Parra-Bernal
    SAO PAULO, July 15 (Reuters) - Brazilian stocks rose on
Monday for the second day in three, led by oil producers and
steelmakers, reflecting the potential benefits stemming from a
weaker currency on the nation's exporters to
better-than-expected economic data in China.
    Shares in OGX Petróleo e Gas Participações SA 
drove the Bovespa higher after rising as much as 9.5 percent, on
optimism recent talks with banks will allow the oil producer
controlled by embattled billionaire Eike Batista to keep
honoring its debt. OGX is down 90 percent this year.
    In contrast, Mexico's IPC index slipped for the
fourth session in six, led by ailing homebuilder Homex
Development Corp. Chile's benchmark IPSA index
 rose for the first day in five on Monday.
    Brazil's benchmark Bovespa stock index jumped 1.5
percent to 46,162.86. The index is down 24 percent so far this
year. 
    Data out on Monday suggested the slowdown in economic growth
in China, the world's second-largest economy, was not greater as
some had feared. China is Brazil's largest trading partner and
the main buyer of the nation's soybeans, iron ore and other
commodities.
    Preferred shares of Petrobras, the state-run oil
producer formally known as Petróleo Brasileiro SA, rose 1.3
percent. Analyst Ivano Westin of Credit Suisse raised his rating
on preferred shares of Usinas Siderúrgicas de Minas Gerais SA
, or Usiminas, to "outperform" from "underperform."
    The rally in OGX propelled gains in the shares of other
companies controlled by Batista. MMX Mineração e Metálicos SA
 soared 8.5 percent, while those of logistics company
LLX Logística SA climbed 9 percent. 
    "The gains in the Bovespa are not due to a change in the way
people perceive the country's markets but more to a number of
positive situations that happened on a one-on-one basis to some
companies in the index," said Luiz Roberto Monteiro, a stock
trader with brokerage Renascença in São Paulo.
    Mexico's IPC index dipped 0.2 percent, slightly
breaking technical resistance on its 50-day simple moving
average.
    On Friday, credit ratings company Moody's Investors Service
slashed Homex's senior unsecured debt ratings to "Ca," and kept
the company's ratings under review for downgrade. The company
said Friday that it failed to make an interest payment on its
senior notes due 2019.
    Chile's IPSA index rose 0.4 percent.
    
    Latin America's key stock indexes at 1433 GMT:
 Stock indexes                              daily %       YTD %
                               Latest        change      change
 MSCI LatAm                       3,123.15     0.97      -18.55
                                                     
 Brazil Bovespa                  46,110.56     1.27      -24.35
                                                     
 Mexico IPC                      40,249.74     -0.2       -7.91
                                                     
 Chile IPSA                       3,756.67     0.44      -12.66
                                                     
 Chile IGPA                      18,674.08     0.35      -11.37
                                                     
 Argentina MerVal                 3,273.54     1.46       14.69
                                                     
 Colombia IGBC                   12,869.99     0.20      -12.54
                                                     
 Peru IGRA                       15,007.93    -0.04      -27.25
                                                     
 Venezuela IBC                1,249,789.00        0      165.10
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