* U.S. debt, budget negotiations still worrying investors
* Banks drive gains in Brazil Bovespa, OGX weighs
* Mexico IPC and Chile IPSA each fall 0.24 percent
MEXICO CITY, Sept 27 Brazilian stocks rose
slightly on Friday, led higher by the local wing of Spanish bank
Santander SA after it announced a one-off dividend paid
to Santander Brasil shareholders.
However, ongoing concern over U.S. budget and debt
negotiations in Washington continued to worry investors who fear
political maneuvering could delay the passage of bills needed to
keep the U.S. government running beyond Sept. 30 and avoid a
debt default, undermining the country's fragile recovery.
Mexico's IPC index was down 0.24 percent in early
trading while Chile's IPSA index also fell 0.24 percent.
The news from Madrid that Santander SA would pay a
one-off 6 billion Brazilian reais ($2.7 billion) dividend to
shareholders in its Brazilian unit, lifted shares in Santander's
local branch by more than 8 percent.
Santander Brasil, owned 75 percent by Santander,
will use the 4.5 billion reais funds from the deal to buy
Other Brazilian banking shares were also up. Itau Unibanco
shares rose 2.54 percent, while Banco do Brasil added
3.39 percent. Banco Brandesco gained 2.33 percent.
However, shares in troubled oil producer OGX,
which is controlled by buffeted billionaire Eike Batista and
fell more than 16 percent on Thursday, were down 3.23 percent,
dragging on the index's gains.
In Mexico, shares in conglomerate Alfa, up 1.74
percent, failed to offset losses by bottler FEMSA,
down 0.38 percent.
Chile's IPSA edged down thanks to a 1.44 percent
decline in shares of Banco Chile.
Latin America's key stock indexes at 1423 GMT:
Stock indexes daily % year-to-da
Latest change te %
MSCI LatAm 3,350.55 -0.59 -11.25
Brazil Bovespa 54,052.21 0.5 -11.32
Mexico IPC 41,228.47 -0.24 -5.67
Chile IPSA 3,886.88 -0.24 -9.64
Chile IGPA 19,085.31 -0.2 -9.42
Argentina MerVal 4,828.69 -0.2 69.17
Colombia IGBC 14,107.56 0.08 11.38
Peru IGRA 15,830.84 0.16 -23.26
Venezuela IBC 1,794,287.83 0 280.60