STXNEWS LATAM-Brazil stocks fall, led by OGX, on U.S. debt concern

Wed Sep 25, 2013 9:19am EDT

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Brazilian stocks fell for a second day on Wednesday, led by shares of struggling oil producer OGX Petróleo e Gas Participações SA, amid increasing concerns over budget and debt negotiations in the United States.

The benchmark Ibovespa index fell 0.3 percent to 54,257.59, the lowest level since Sept. 20. Worries over a potential U.S. government shutdown, and mixed signals on the immediate future of the monetary policy that has given support to equities, kept foreign investors in Brazil on edge.

OGX fell after the company said in a securities filing that it is still analyzing how to strengthen its capital structure. Bonds of the company are currently trading at around 18 cents on the dollar - a level that usually points to an increasing risk of default. OGX has denied repeatedly that it is restructuring its debt.