Reuters logo
EMERGING MARKETS-Brazil stocks plunge on OGX bankruptcy fears
October 26, 2013 / 12:37 AM / 4 years ago

EMERGING MARKETS-Brazil stocks plunge on OGX bankruptcy fears

MEXICO CITY, Oct 25 (Reuters) - Brazilian stocks slumped on
Friday due to a nearly 20 percent decline in the share price of
oil producer OGX, as investors bet the company may be close to
filing for bankruptcy. 
    Mexico's IPC index jumped more than 1 percent, while
Chile's bourse lost 0.71 percent. 
    Brazil's benchmark Bovespa stock index sank for the
third straight day, losing 1.32 percent to post its first weekly
loss in three.
    Shares of debt-laden oil firm OGX Petroleo e Gas
Participacoes SA fell 19.44 percent, contributing
most to the index's decline. Traders cited ongoing concerns the
company might seek bankruptcy protection. 
    Telecoms firm Tim Participacoes SA lost 3.01
percent, tracking a loss in parent firm Telecom Italia
. Telecom Italia shares plunged more than 6 percent on
Friday over fears that the heavily indebted group could sell
more shares and cancel its dividend payment. 
    Shares of state-controlled lender Banco do Brasil SA
 rose 1.16 percent, helping support the index, after
Brazil's government raised the maximum stake that non-resident
foreign investors can hold in the company to 30 percent from 20
    State-run oil company Petroleo Brasileiro SA,
known as Petrobras, climbed 1.37 percent. The company posted a
39 percent fall in third-quarter profit after the market closed.
    Mexico's IPC index was led higher by a 2.77 percent
rise in shares of bottler Femsa. 
    Shares of telecommunications firm America Movil,
controlled by billionaire Carlos Slim, began Friday deeply in
the red, one day after the company posted a sharp fall in third
quarter profit. But later it pared gains to trade up 0.59
    Chile's IPSA index slipped 0.71 percent as shares of
Banco Santander Chile dropped 3.22 percent.
    Latin America's key stock indexes at 0004 GMT:
 Stock indexes                            daily %  year-to-da
                       Latest              change        te %
 MSCI LatAm                  3,448.61        0.76       -9.19
 Brazil Bovespa             54,154.15       -1.32      -11.15
 Mexico IPC                 40,671.61        1.06       -6.94
 Chile IPSA                  3,879.11       -0.71       -9.82
 Chile IGPA                 19,102.57       -0.56       -9.34
 Argentina MerVal            5,526.29       -2.04       93.61
 Colombia IGBC              14,316.20        0.03       13.03
 Peru IGRA                  16,196.63       -0.17      -21.49
 Venezuela IBC           2,108,566.91        3.93      347.26

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below