July 3, 2013 / 3:35 PM / 4 years ago

EMERGING MARKETS-Brazil stocks volatile, OGX slide offsets bargain-hunting

* OGX shares down 50 pct this week as firm exits oilfields
    * Petrobras shares rally following Tuesday rout
    * Brazil Bovespa down 0.11 pct, Mexico IPC falls 0.57 pct

    By Asher Levine and Danielle Assalve
    SAO PAULO, July 3 (Reuters) - Brazilian stocks swung widely
on Wednesday as bargain hunters picked up cheap shares the day
after the Bovespa index posted its biggest drop in nearly two
years, though shares of oil producer OGX extended a rout that
caused the stock to fall over 50 percent this week alone.
    Mexico's IPC index and Chile's bourse both
extended recent losses.
    Brazil's benchmark Bovespa stock index slipped 0.11
percent in a volatile session, briefly falling below 45,000
points, a level the index has not closed below in over four
    Shares of OGX Petroleo e Gas Participacoes SA,
the oil company controlled by embattled billionaire Eike
Batista, fell for the fifth straight session, losing 15.6
percent to 0.38 reais, a record low.
    OGX pulled three offshore oil prospects and slashed capital
spending on Monday, though the company said on Wednesday that it
would be able to cover medium-term obligations. 
    Brazil's securities regulator on Wednesday began a probe
into the embattled company's market disclosure standards.
    Port operator LLX Logistica SA and mining firm
MMX Mineracao e Metalicos SA, both part of Batista's
EBX Group, fell 6.3 percent and 5.5 percent, respectively.
    "The crisis in the EBX Group is a strong component of the
market's fall, but it's not the only thing," said Nathaniel
Cezimbra, a research manager at BB Investimentos in Sao Paulo.
"There is a widespread negative investor outlook on Brazil."
    The Bovespa posted its biggest one-day drop in nearly two
years on Tuesday as disappointing economic data contributed to
mounting concerns over the outlook for Latin America's largest
    Some of the most widely traded shares rebounded on Wednesday
as bargain-hunters stepped in.
    Shares of state-run oil company Petroleo Brasileiro SA
, known as Petrobras, rose 2.5 percent after having
fallen their most in over a year in the previous session, while
shares of steelmaker Usiminas rose 3.2 percent.
    Mexico's IPC index fell for the second straight day,
dropping 0.57 percent to 40,600.10.
    Mexican consumer confidence slid for the second month in a
row and by the most since February, the national statistics
office said on Wednesday. 
    Shares of telecommunications firm America Movil,
controlled by billionaire Carlos Slim, fell 1.5 percent,
contributing most to the index's decline.
    Chile's IPSA index fell for the third straight day,
losing 0.86 percent to 3,843.26 as shares of retailer Falabella
 dropped 1.8 percent.
    Latin America's key stock indexes at 1446 GMT:
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,070.91     -0.98    -18.34
 Brazil Bovespa               45,181.20     -0.11    -25.87
 Mexico IPC                   40,600.10     -0.57     -7.11
 Chile IPSA                    3,843.26     -0.86    -10.65
 Chile IGPA                   19,099.45      -0.7     -9.35
 Argentina MerVal              2,981.17     -0.43      4.45
 Colombia IGBC                12,617.96     -0.98    -14.26
 Peru IGRA                    15,523.91       0.2    -24.75
 Venezuela IBC                     0.00         0   -100.00

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