* Bovespa retreats after nearing 57,000 level
* OGX sells stake in oil blocks to Petronas
* Brazil Bovespa falls 0.14 pct; Mexico IPC down 0.13 pct
By Asher Levine
SAO PAULO, May 8 Brazilian stocks reversed early
gains on Wednesday after the benchmark Bovespa index hit
technical resistance near 57,000 points, though shares of oil
producer OGX jumped after it announced a deal with Malaysia's
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, falling 0.14 percent after touching 56,800, a level the
index has not closed above in nearly two months. In addition,
the index came close to hitting its 75-day simple moving
average, which it has struggled to close above since early
"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.
Shares of OGX Petroleo e Gas Participacoes SA,
controlled by Brazilian billionaire Eike Batista, rose nearly 6
percent after Malaysian state oil company Petronas agreed to pay
$850 million for a stake in two of its offshore blocks.
OGX shares have plunged over 50 percent this year on
concerns over missed production targets and dwindling funds.
"We believe the transaction removes an overhang on OGX's
shares on the back of lack of cash," JPMorgan analysts led by
Felipe Dos Santos wrote on Wednesday, though they noted that
operational uncertainties remain.
Mexico's IPC index fell for the second session in
three, losing 0.13 percent to 42,352.38.
Shares of bottling group Femsa fell 2.2
percent, contributing most to the index's decline, while
retailer Wal-Mart de Mexico slipped 1.5 percent.
Chile's IPSA index rose for the fifth session in
six, adding 0.35 percent to 4,356.32, as shares of retailer
Cencosud advanced 1.5 percent.
Latin America's key stock indexes at 1757 GMT:
Stock indexes daily % YTD %
Latest change change
MSCI LatAm 3,802.98 0.15 -0.02
Brazil Bovespa 56,193.66 -0.14 -7.81
Mexico IPC 42,352.38 -0.13 -3.10
Chile IPSA 4,356.32 0.35 1.28
Chile IGPA 21,288.23 0.3 1.03
Argentina MerVal 4,064.32 -0.05 42.39
Colombia IGBC 13,317.35 -0.45 -9.50
Peru IGRA 17,496.41 0.51 -15.19
Venezuela IBC 682,645.44 0.16 44.80