April 22, 2013 / 10:11 PM / 5 years ago

EMERGING MARKETS-Brazil stocks rise on OGX stake speculation

* OGX shares soar on talk of stake sale
    * Brazil Bovespa adds 0.68 pct, Mexico IPC up 0.25 pct

    By Asher Levine
    SAO PAULO, April 22 (Reuters) - Brazilian stocks climbed on
Monday as investors piled back in to troubled oil firm OGX on
reports of a stake sale.
    Mexico's IPC index edged higher, while Chile's bourse
 fell 0.32 percent. 
    Brazil's benchmark Bovespa stock index rose for the
third day in a row, adding 0.68 percent to 54,297.73. 
    Shares of OGX Petroleo e Gas Participações SA,
the oil company controlled by Brazilian billionaire Eike
Batista, soared nearly 20 percent, driving the index into
positive territory.
    Brazil's Folha de S.Paulo newspaper said on Sunday that
negotiations were at an advanced stage for Russia's
second-largest crude producer Lukoil to take a stake in the
company, in a deal that would also involve Malaysia's Petronas.
    OGX shares have plunged nearly 65 percent this year on
concerns over missed production targets and the potential need
for more capital.
    OGX said in a brief statement that the newspaper report on
the rescue plan was not accurate.
    "You have a lot of people who are short on the shares, so
when a piece of news like that comes out, they exit their
positions, which ends up boosting the shares quite a bit," said
Alvaro Bandeira, a partner at Orama Investimentos in Rio de
    Mexico's IPC index rose 0.25 percent to 42,914.20, as
shares of telecommunications firm America Movil,
controlled by billionaire Carlos Slim, added 2.25 percent.
    Chile's IPSA index fell to 4,291.96 as shares of
Banco Chile dropped 1.10 percent.
    Latin America's key stock indexes at 2148 GMT:
 Stock indexes                                      % change
 MSCI LatAm                          3,686.88          -0.39
 Brazil Bovespa                     54,297.73           0.68
 Mexico IPC                         42,914.20           0.25
 Chile IPSA                          4,291.96          -0.32
 Chile IGPA                         21,065.60          -0.23
 Argentina MerVal                    3,530.40           2.49
 Colombia IGBC                      13,386.05           0.53
 Peru IGRA                          17,900.16          -0.03
 Venezuela IBC                     646,681.19           0.42
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