* Brazil's Bovespa snaps 3-day rally
* OGX gains after starting oil production at well
* Brazil Bovespa falls 0.95 pct, Mexico IPC flat
By Asher Levine and Danielle Assalve
SAO PAULO, Jan 4 Brazilian stocks fell on Friday
as investors sold off shares of commodities producers following
a three-day rally that saw the index rise nearly 5 percent.
Mexico's IPC index remained mostly flat, while
Chile's bourse extended its rally into a fourth day.
Brazil's benchmark Bovespa stock index posted its
biggest daily loss in a month, losing 0.95 percent to 62,712.05.
The index reached its highest level in nearly nine months in
the previous session, with strong appetite for riskier assets
following an agreement on Tuesday by U.S. lawmakers to avoid the
so-called "fiscal cliff" of automatic tax hikes and spending
"It's a healthy correction, considering you can't really
maintain such an accelerated level of growth," said Paulo
Esteves, chief analyst with Gradual Investimentos in Sao Paulo.
"The market will be able to breathe a bit before continuing on
its gaining trend."
Raw materials producers contributed most to the index's
fall, with preferred shares of iron-ore mining giant Vale SA
losing 1.71 percent and state-controlled oil firm
Petroleo Brasileiro SA, known as Petrobras, down 0.25
Shares of oil producer OGX Petroleo e Gas SA,
controlled by billionaire Eike Batista, rose 3.8 percent after
the company said it began oil output from a third well in its
offshore Tubarão Azul field.
Shares of steelmaker Cia Siderúrgica Nacional SA
added 1.15 percent after sources at steel distributors said the
company will raise prices for some products.
Mexico's IPC index was little changed at 44,375.23
points. A technical momentum indicator known as slow stochastics
posted a "bearish cross" in overbought territory, however,
suggesting shares may fall in coming days.
Telecommunications firm America Movil, controlled
by billionaire Carlos Slim, rose 0.13 percent, partially
offsetting a 2.12 percent fall by mining firm Industrias Penoles
Chile's IPSA index gained for the fourth straight session,
adding 0.2 percent to 4,365.68, its highest level since July.
A technical indicator known as the relative strength index
rose to its most "overbought" level in over 10 months, however,
indicating a recent rally may be due to end.
Industrial conglomerate Copec rose 0.5 percent,
contributing most to the index's gains, while retailer Cencosud
added 0.54 percent.
Latin America's key stock indexes at 1446 GMT:
Stock indexes daily % YTD %
Latest change change
MSCI LatAm 3,906.64 -0.68 3.56
Brazil Bovespa 62,712.05 -0.95 2.89
Mexico IPC 44,375.23 0.01 1.53
Chile IPSA 4,365.68 0.2 1.49
Chile IGPA 21,322.74 0.17 1.20
Argentina MerVal 2,960.41 -0.49 3.72
Colombia IGBC 14,807.76 -0.10 16.91
Peru IGRA 21,110.51 -0.05 2.33
Venezuela IBC 471,444.53 0 0.00